US West Coast Port Labor Agreement Reached

Last week, the International Longshore and Warehouse Union (ILWU), which represents West Coast dock workers, and the Pacific Maritime Association (PMA), which represents ocean carriers and terminal operators, reached a tentative agreement on a new six-year contract that covers employees at all 29 West Coast ports — a significant step toward averting potential supply-chain disruptions for the US economy.

Following intervention from US Department of Labor, the ILWU secured a reported 32% salary increase over the new six-year contract that is retroactive from July 1, 2022. The finalization of the contract details will be conducted on a regional and coastal level by local ILWU chapters along with the PMA. The tentative agreement is subject to ratification by both parties involved, and the ILWU and the PMA will now proceed with their respective ratification processes. While a date for a coastwide vote by the entire PMA-ILWU body has not been set, the timeline for the ratification process historically takes about three months.

KWE aims to mitigate any disruptions to client supply chains and will continue to monitor the situation as it develops. Please contact your local representative for further information.

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