Tentative West Coast Port Labor Contract is Tremendous News for U.S. Red Meat

The Pacific Maritime Association (PMA) and International Longshore and Warehouse Union (ILWU) announced a tentative agreement on Wednesday night on a six-year West Coast Port Labor Contract. The agreement brings an end to a year-long labor negotiation that had recently turned contentious, U.S. Meat Export Federation’s John Herath said in a USMEF Audio Report. Work stoppages have slowed cargo movement and effectively shut down some container terminals. 

"Starting June 2, we've seen negotiations hit a new low as disruptive work actions have slowed operations," Maria Zieba, vice president of international affairs for the National Pork Producers Council, said in a story on Monday about the port delays.

Both parties indicated that port operations are expected to return to normal. The union and port management acknowledged the agreement was brokered through the assistance of Acting Secretary of Labor Julie Su. 

“This tentative agreement that's been reached with the West Coast longshoremen is of paramount importance for us,” said USMEF President and CEO Dan Halstrom. 

A large percentage of the value-added chilled business, which is pork and beef’s highest value business, goes off the West Coast to Asian markets such as Japan, Korea, Taiwan and China, he explained. 

“Exporters and importers in these countries rely upon a certainty for stability in terms of their shipping logistics. Before this agreement was reached, there was a large level of uncertainty,” Halstrom pointed out. 

Questions like "Will my shipment be delayed?" and "Will it be passed over and skip a week?" have been weighing heavy on the minds of exporters and importers.

“These are the sorts of things that were implied since a year ago when the contract expired. This is good news in the sense of restoring that certainty and reliability that we're known for: 52-weeks-a-year business to these various ports in Asia,” Halstrom said. 

The PMA and ILWU are not releasing any details of the agreement at this time. The agreement must still be ratified by both sides, a process that could take several weeks. 

PMA President James McKenna and ILWU President Willie Adams said in a joint statement, “We are also pleased to turn our full attention back to the operation of the West Coast Ports.”

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