ILWU Contract Extension
It is hard to believe we are already talking about the West Coast ILWU (International Longshoreman) contract. The contentious labor dispute over the contract renewal in 2014, led to massive congestion and delays caused by worker slowdowns. Negotiators eventually enabled a new contract to be signed in early 2015, but with a short validity, expiring July 1, 2019. The contract covers 29 ports, including the major hubs of Oakland, Los Angeles, Long Beach, and Seattle and includes 20,000 longshoremen employed on the west coast. The good news is that the ILWU has ratified a three-year contract extension with the Pacific Maritime Association (PMA), extending the contract until July 1, 2022. The contract extension will raise wages, maintain health benefits, and increase pensions in the 2019-2022 period, but avoids potential conflict and disruption in 2019.
Effective August 1, the Traffic Mitigation Fee (better known as PierPass) increased in the port of Los Angeles and Long Beach by 2.3%. The new fee is $72.09 per TEU (twenty foot equivalent unit), and $144.18 per forty foot container. The fee is charged only on containers that are moved between 3:00 am and 6:00 pm on weekdays. PierPass is not charged for containers moving in off peak hours (6pm to 3am on weekdays and 8am to 5pm on Saturdays). While Pierpass has certainly diverted trucks off the roads and freeways during the busiest times of the day, many companies who do not operate 24/7 carry the burden of the additional fees for using the ports during peak hours. Should you want any additional information or resources on PierPass, please contact WSSA and we are happy to assist.
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