The union representing West Coast dockworkers and their employers on Monday reached a tentative agreement on a key component of the stalled labor talks that threaten to cripple cargo movement at the ports of Los Angeles and Long Beach.
The Pacific Maritime Association, which represents employers at 29 ports, and the International Longshore and Warehouse Union, which represents 20,000 dockworkers, have agreed on the issue of repairing and maintaining the trailers that are vital to moving cargo containers in and out of Los Angeles, Long Beach and other West Coast ports.
A spokesman for the PMA confirmed the tentative agreement Monday.
“The hope is that talks will now progress more quickly and that a coast-wide contract can be reached,” said PMA spokesman Steve Getzug.
Getzug declined to comment further on the issue surrounding the trailers, also called chassis.
An ILWU spokesman declined to comment, only to say that talks are underway now and continuing this week.
This tentative agreement, a sticking point in negotiations, could be a sign that both sides may reach a resolution to contract talks that have lasted for eight months. The last contract, which spanned six years, ended in July.
Although both sides last summer came to an agreement on health benefits, talks have intensified in the past several months, with both sides accusing each other of causing slowdowns at the ports.
The PMA blamed the union for not dispatching enough skilled crane operators to move containers out of terminal yards, forcing employers to make the business decision of suspending ship unloading shifts at night in favor of clearing the yards.
Getzug echoed that sentiment Monday.
“Unfortunately, the ILWU slowdowns continue, extending both the problems and economic harm these actions have caused up and down the West Coast since Oct. 31,” he said.
The ILWU has strongly denied the allegation and said that the employers’ move to cut night shifts has affected more than 800 ILWU jobs. They also have said that employers refuse to deal in skilled training for workers.
Talks have been so contentious that both sides agreed to include a federal mediator in negotiations, something that for weeks political leaders and dozens of trade organizations whose members rely on the ports to deliver their goods have wanted.
For months, ports have been experiencing unprecedented congestion because of a perfect storm of factors that included the lack of available chassis.
Ocean carriers had previously owned the chassis but began divesting interest in the trailers, leaving them to third-party providers.
The shift in equipment ownership has made it a nightmare for truck drivers who often can’t get a chassis to lug away containers because they’re not available at terminals when they’re supposed to be.
The issue has prompted port officials to find solutions. The Port of Los Angeles brought together three major chassis providers and a terminal operator — all of whom have the majority of chassis, with more than 95,000 — and persuaded them to create a pool system and share them. That’s supposed to come online in the coming weeks. Meanwhile, the Port of Long Beach is augmenting usage during peak hours by creating a chassis fleet of its own.
Few details have been released about the tentative agreement, but the ILWU has long desired those jobs associated with maintaining and repairing chassis, which are now owned by companies not beholden to the ILWU contract.
“Hundreds of longshoremen are mechanics, and their jobs would be threatened if the ILWU lost jurisdiction over chassis (maintenance and repair),” according to the Journal of Commerce, the trade publication covering the maritime industry.
Jon Slangerup, chief executive at the Port of Long Beach, praised the tentative agreement reached on chassis.
“This is very good news,” Slangerup said. “Hopefully this is the breakthrough that will lead to a final agreement between the PMA and ILWU. We need a settlement so that labor and management can focus once again on moving cargo quickly and reliably.”
Contact Karen Robes Meeks at 562-714-2088.
