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MORE ON DOCKWORKERS' NEW LABOR AGREEMENT AND WHY IT MATTERS TO AGRICULTURE
Sep. 11, 2023
National Pork Producers Council (NPPC) reports:
What happened:West Coast dockworkers late last week agreed to a new labor contract that will keep shipping ports from San Diego to Seattle running through June 2028. The International Longshore and Warehouse Union (ILWU), representing more than 22,000 dockworkers, voted to accept the offer from the Pacific Maritime Association (PMA), representing port operators.
On August 31, Members of the ILWU voted 75% in favor of approving the new six-year agreement, which is retroactive to July 1, 2022, and covers the West Coast's 29 port facilities. PMA member companies previously approved the labor deal.
Why it matters: About 60% of U.S. pork exports are transported by ocean freight, with the vast majority going out through West Coast ports to Asia -- three of the U.S. pork industry's top export markets are China, Japan, and South Korea.
Port disruptions, including dockworker strikes and work slowdowns related to labor contract negotiations, can jeopardize the delivery of perishable commodities, costing agricultural producers millions of dollars and, potentially, losing foreign customers.
NPPC's take: NPPC applauds the new labor agreement, which will help ensure the continued and uninterrupted flow of U.S. exports through West Coast ports. Earlier in the year, NPPC joined 114 other agricultural and business organizations on a letter to President Biden, urging the administration to intervene in the year-long PMA-ILWU labor negotiations. NPPC wanted to avoid port disruptions such as those from late 2014 into early 2015 at West Coast ports that hurt U.S. pork exports and cost the U.S. meat industry millions of dollars in lost export sales.
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