On June 2, US ports along the West Coast experienced significant slowdowns due to a mass strike by dockworkers. The workers were unhappy with the proposed pay increase agreed upon by the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). Negotiations between the two parties had been ongoing since May 10, 2022.
The Port of Oakland experienced the most significant disruption, with international terminals closed for the entire day. Other ports, such as the Port of Los Angeles and Port of Hueneme, were affected to different extents, while the Port of Long Beach remained open with all container terminals operational.
The Pacific Maritime Association (PMA) blamed the International Longshore and Warehouse Union (ILWU) for the disruptions, but the ILWU did not claim responsibility for a work stoppage. The disruptions occurred amid negotiations between the two parties to revise their coast-wide master contract. Unlike previous disputes that were localised, Friday’s events spread to several major maritime gateways along the West Coast.
Port officials and industry associations called for a swift resolution to the dispute to avoid prolonged disruptions. The Retail Industry Leaders Association expressed concern about the impact on retailers and urged the Biden-Harris administration to intervene if necessary.
The disruptions are expected to have ripple effects on shipping and logistics, potentially causing delays and demurrage fees. Even mild disruptions can trigger a chain reaction of problems throughout the supply chain.
Both the PMA and the ILWU released statements regarding the situation. The PMA accused the union of staging disruptive work actions, affecting ports in Oakland, Seattle, Tacoma, and Hueneme. The ILWU, on the other hand, did not claim responsibility for a work stoppage but expressed dissatisfaction with the economic package offered by terminal employers during contract talks.
According to the workers, the proposed increase across all three tiers (A, B, and casual) would amount to £1.25 (US$1.56). Consequently, a £1.25 raise would represent a roughly 4.5 percent wage increase. However, considering the current average inflation rate of 7.4 percent in California, this raise is essentially a wage cut.
Negotiations between the ILWU and employers are still ongoing, despite the events on Friday, according to ILWU International President Willie Adams. Reports suggesting a breakdown in negotiations are false.
