The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) announced late Tuesday that they have reached a tentative agreement on terms for health benefits, subject to agreement on the other issues in the negotiations.
The parties have agreed not to discuss the terms of this tentative agreement as negotiations continue, but determining who would pay what share of a new tax created by the Affordable Care Act, or Obamacare, on “Cadillac health care plans” was considered one of the most contentious points in the talks, which began May 12. The ILWU has agreed to continue working without a contract since their six-year agreement with the PMA expired in July 1.
“Health benefits was one of the major issues being negotiated as new taxes from the Affordable Care Act are expected to add millions of dollars in new liabilities for employers,” noted Alex Boain, senior director of government affairs for Outdoor Industry Association. “Neither side announced details of the tentative agreement, so it is unclear which side is absorbing the majority of the new costs.”
Boian noted there are several outstanding issues remaining in the negotiations including how new automation for loading and unloading cargo will affect dock workers’ jobs.
“OIA will continue to monitor the negotiations and send updates as needed,” he said.
The contract being negotiated covers nearly 20,000 longshore workers at 29 West Coast ports, including the ports of Los Angeles and Long Beach, which handle much of the athletic and outdoor footwear, apparel and sporting goods imported from Asia. Container imports surged in May and June as retailers and wholesalers moved up imports to mitigate the risk of a dockworkers strike. Tuesday's announcement eases concerns that an impasse might close port just as imports for the holiday shopping season were scheduled to arrive on the West Coast.
