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Retailers welcome west coast port contract agreement Print Email
Written by Stephen E. Schatz   
Monday, 23 February 2015 03:11 PM America/New_York

NRF-logoInternational Longshore and Warehouse Union and the Pacific Maritime Association have reached a new five-year agreement on a labor contract that will clear out the “crisis-level congestion and backlog” at ports on the west coast.

National Retail Federation President and CEO Matthew Shay applauded both parties for coming together on a new labor contract. The previous contract expired on July 1, 2014, and negotiators have been talking formally since last May.

International trade at seaports, which handles about $1 trillion annually according to newsmax.com, had become “snarled.”

“It is now time for the parties to quickly ratify the deal and immediately focus on clearing out the crisis-level congestion and backlog at the ports,” Shay said. “We also thank Secretary of Labor Thomas Perez and the administration for engaging the parties on this critically important economic and supply chain priority.

“The congestion, slowdowns and suspensions over the last few months have had a significant economic impact on the entire supply chain and those who rely on the West Coast ports to move their goods and products around the world and throughout the country. The agricultural, manufacturing, retailing and transportation industries have all suffered due to the nine-month-long contract negotiations.

“As we welcome today’s news, we must dedicate ourselves to finding a new way to ensure that this nightmare scenario is not repeated again. If we are to truly have modern international trade, supply chain and transportation systems, we must develop a better process for contract negotiations moving forward. We must commit whatever resources necessary to ensure that this will not happen again.”

A vote by union members is expected in April. The full maritime association must approve the deal as well.

Dozens of ships loaded with many types of goods are using waters off the ports as “parking lots.” It is expected to take weeks, or perhaps months, to resolve the gridlock on the docks.