After a year of contract negotiations that saw numerous delays,
workers and port operators at West Coast ports have reached a tentative agreement.
In a joint statement released on Wednesday,
they announced a tentative agreement on a new contract covering 22,000 workers at 29 ports.
Biden administration intervenes in labor dispute for the second time
President Biden issued a statement congratulating them on reaching an agreement after a lengthy negotiation.
This is the second time the Biden administration has intervened in a labor dispute that is expected to have a major impact on the U.S. economy,
having previously intervened in a labor dispute between railroad companies and workers.
Port hit hard by protracted negotiations
Negotiations between the Pacific Shipping Association and the Longshore and Warehouse Union have been protracted due to disagreements over automation and wages,
and recently announced an incremental agreement on health care benefits.
The protracted negotiations have caused work delays that have taken a significant toll on ports,
as evidenced by a 40% year-over-year decline in cargo throughput at the Port of Los Angeles.