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Aug 11, 2016
The American Soybean Association (ASA) was one of 128 organizations that signed a letter to the International Longshore & Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), urging them to begin early negotiations on a new labor contract in hopes of avoiding trade disruptions that occurred during previous negotiations. The timing of the letter coincides with meetings this week, where delegates from the ILWU will decide whether to join the PMA in early negotiations on a contract extension. The existing contract expires on July 1, 2019.
The 2015 dispute during negotiations threatened supply chain continuity for countless U.S. agricultural commodities, causing extreme congestion, delays and uncertainty, in addition to costing the agriculture industry millions of dollars for every week that the negotiations lasted.
The ILWU and PMA normally begin contract negotiations just a couple of months before the existing contract expires. However, if they agree to begin contract extension talks more than two years in advance, the ILWU and PMA would send a clear message to the stakeholder community that they intend to avoid any disruptions at West Coast ports in the future.
A copy of the letter can be viewed here.
