The International Longshore & Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) will sit down today and tomorrow to discuss an early contract extension. The current contract expires June 30, 2019…a mere 2.5 years from now.
Given the turmoil we encountered during the last contact negotiation, all stakeholders as well as the US Congress are pushing for a speedy and amicable extension.
With the contract between the Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union (ILWU) set to expire on June 30, 2014, cargo owners shipping through US West Coast gateways are getting anxious. The first meeting between the two sides is scheduled to take place soon, and the union will be submitting their wish list. At the top of the list will be jurisdiction, automation and who will pay the tax levied by the Affordable Care Act on their “Cadillac” healthcare plan.
The general consensus among industry insiders is that while the contract will be renegotiated without major incident, the main issues will not be decided upon easily or quickly. A new contract will not likely be completed prior to the expiration of the current contract, and we will see a 90-day contract extension while negotiations continue. We will continue to keep you posted.
We are excited to usher in a new year. It may sound crazy, but we’re looking forward to another year of changes and challenges as those are things that make logistics fun.
One notable change for 2014: A significant California Air Resources Board (CARB) drayage truck retirement deadline went into effective January 1, 2014. In order to serve any of the ocean and rail terminals in the state, one must be driving a model-year engine 2007 or newer truck.
One notable challenge for 2014: The contract between the International Longshore and Warehouse Union (ILWU) and the employer group, Pacific Maritime Association (PMA), expires on June 30, 2014. It is expected jurisdiction will be a key factor in the discussions. The ILWU sees every job performed at the marine terminals as a job belonging to the ILWU. We have seen several battles over the jurisdiction of jobs on both coasts over the past year which have resulted in work stoppages and legal action.