On May 22, the dockworkers union of all 29 U.S. West Coast ports voted happily for the approval of contract with shipping companies and terminal operating companies to finish the labor strife which has been going on since months. This contract agreement was signed in February.
82% votes from the members of International LongShore and Warehouse Union were observed to be in support of the new labor pact which will be functional for coming 5 years. This labor pact will be operational till the month of June, 2019. This was announced by the union during the final counting of voting that was carried out last month.
The opposing parties that were represented by the Pacific Maritime Association, also voted in favor of this deal on Tuesday.
The deal was expected to be finalized soon but the final verdict was given after 3 months. These 3 months went in negotiation between the two sides, when both sides reached a settlement with the help of Thomas Perez, who serves as federal mediator and U.S. Labor Secretary.
This conflict between the two sides may turn out to be very hazardous to the U.S. economy. For this purpose, Perez was made an emissary of President Barack Obama and sent to California. Perez worked under great political pressure, but managed to make a settlement between the two sides. This conflict may cause loss of billions of dollars to the economy.
“The negotiations for this contract were some of the longest and most difficult in our recent history,” union president Robert McEllrath said in a statement.
There was a lot tension between the two sides during negotiation period. The traffic at ports was noticeably affected and it was affecting the economy of U.S. Port handles around 70% of the import from the whole world mainly Asia.
The slowdowns in U.S. economy and trade were blamed by each side on the other; this was done to put pressure on the opponent.
Perez said “The gridlock was most keenly felt at the twin ports of Los Angeles and Long Beach, the two busiest container-cargo hubs in the United States.”
