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The Meishi Terminal Union refuses to extend the labor contract, triggering port operations to worry!

  • Author:Revin
  • Release Date:2021-11-30
It is reported that the Weisi Terminal Trade Union - International Pier and Warehouse Alliance ILWU rejected the proposal of the existing labor contract for one year, which may laid a foundation for the fierce negotiations of both parties next year.



PMA has sent ILWU on November 16. It is proposed to extend their existing labor contracts for one year. On July 1, 2023, the reason is that the supply chain is in trouble, and it is important to maintain stable operation.



PMA also implies concerns that the contract negotiations may lead to some degree of confusion, extending the existing contract period will be the necessary steps to protect business and economy during economic recovery.



The last part of the negotiations were in 2014. At that time, the West Coast port of the United States faced a slowdown in the nine months until the White House intervention ended. The contract was originally scheduled to expire in 2019, and the contract was extended to avoid the contract to avoid the shipping interruption and exchange of higher wages and pensions, the contract was extended three years and July 1, 2022.



On the occasion of the negotiation, Los Angeles and Long Beach Port is facing a record of goods backlog, and the continuous supply chain interruption leads to the delay of freight, some of the goods shortage and inflation acceleration.



The Meishi Terminal Union refuses to extend the labor contract, triggering port operations to worry!



ILWA refused the proposal of the PMA deferred year. The chairman of ILWU said in a reply that the dock worker also pays attention to the economy, and it is a very ironic thing to abandon the collective negotiations about wage and working conditions. He pointed out that workers outside the pier, such as truck drivers and warehouse workers, because there is no wage and working conditions through collective negotiations, can't persuade people to stay in hard physical labor.



Chairman of Chairman of ILWU said: "In order to solve the problem of important problems with the dock workers, we have been waiting for seven years."



Chairman of PMA said: "Due to the supply chain interruption, it is in line with the best interests of the national economy. Considering the reactions of the trade union, we are ready to meet with the union in the negotiation table next year." PMA told Bloomberg, it has to ILWU The first proposal is submitted, and it is expected that the negotiation will begin next spring.



In addition to standard issues such as wages and benefits, automation is likely to be the center of this negotiation, and many years have always been a debater point of negotiations in both parties.



The Meishi Terminal Union refuses to extend the labor contract, triggering port operations to worry!



At the same time, port, terminal operators, shipping companies, and even newly established White House Supply Chain Special Working Groups emphasize the importance of automated investment and technology to provide long-term solutions for supply chains.



In the past contract, trade unions make concessions in digital and ports using automated handling machines, but recently struggled with new automation projects. This year, ILWU has delayed the automation project of the Long Beachport Terminal Operator TTI, which has previously opposed the project of AMP in the port of Los Angeles.



Industry insiders predict that trade unions may take a strong hard position to port automation. Trade members may use the pressure strategy as in previous negotiations, which will slow the flow of goods, exacerbate congestion, so that the Meixi Port congestion will continue to be a problem in next year.



President of PMA said that when refused the extension contract, ILWU said that due to the transportation of the shipping company's profit, 2022 will be a good year of negotiation. However, Chairman of PMA said that three of the four contract negotiations have led to the interruption of port operations. This fact is inevitable.