On the afternoon of July 1, local time in the United States, the labor-management negotiation of dock workers in the United States and West, which has attracted the attention of the global shipping industry, finally failed to reach any agreement before the original contract expired. The employers who run the West Coast port terminals and the union representing dockworkers rejected calls to extend the contract, which was due to expire at 5 p.m. local time on July 1.

“Both parties understand the strategic importance of the port to the local and U.S. economy and recognize the need to finalize a new contract covering ports on the West Coast as soon as possible to ensure continued confidence in the West Coast as a competitive trade route”, Pacific The Maritime Association (PMA) and the International Terminal and Warehouse Union (ILWU) said in a joint statement on Friday (July 1) afternoon.

The existing Dockers’ master contract covers 22,000 dockworkers at 29 ports on the U.S. West Coast, accounting for about 44 percent of U.S. container shipments. The main container gateways are located at the dual ports of Los Angeles and Long Beach, California.

Earlier in the day, more than 150 business groups urged the White House to push management and labor at West Coast ports to temporarily extend contracts to ensure supply chain continuity for businesses, workers and consumers as the economy faces mounting challenges.

Negotiations for a new five-year labor agreement between the International Terminals and Warehouse Union (ILWU) and West Coast employers began in mid-May against a backdrop of a resurgence in supply chain dislocations caused by COVID-19, record freight volumes and congested container terminals inland distribution. Challenges, product shortages and fears of a potential recession are mounting.

“Extending current contracts will provide additional certainty for all supply chain stakeholders who rely on U.S. West Coast ports. This is even more important as we continue to experience supply chain disruptions and congestion for a variety of reasons,” the trade associations said in a statement. in a letter from President Joe Biden.

Dozens of Democratic lawmakers wrote to the PMA and the International Terminals and Warehouse Union (ILWU) on Thursday, emphasizing the importance of working in good faith to finalize new contracts and ensure ports continue to operate uninterrupted. Both sides face heavy political pressure to reach a settlement. Although a large number of International Terminals and Warehouse Union (ILWU) members earn more than $100,000 a year, the union positions the negotiations as one between mainstream U.S. workers and foreign shipping companies making record profits.

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