Workers with the International Longshore and Warehouse Union and the Pacific Maritime Association have tentatively agreed on a labor deal, members of both groups announced Wednesday.

The deal comes after 13 months of negotiations over wages and benefits between the union representing 22,000 dockworkers and the organization representing ocean carriers and terminal operators at the West Coast’s 29 ports.

What You Need To Know

  • The International Longshore and Warehouse Union reached a tentative deal with the Pacific Maritime Assn. Wednesday

  • The ILWU's 22,000 dockworkers have been doing their jobs without a contract since last July and were lobbying for better wages and benefits

  • Acting U.S. Labor Secretary Julie Su helped broker the deal

  • The deal affects workers at 29 West Coast ports

“The tentative agreement delivers important stability for workers, for employers and for our country’s supply chain,” Acting U.S. Labor Secretary Julie Su said in a statement.

Su flew to San Francisco Monday to meet with both sides in the contract talks.

The U.S. Chamber of Commerce estimated that a serious work stoppage at the Port of LA and its sister port in Long Beach could cost the U.S. economy close to $500 million daily. About 40% of West Coast imports, and 16% of U.S. imports, come through the Port of LA, supporting 1 in 15 jobs in the LA area.

“The tentative agreement between the International Longshore and Warehouse Union and the Pacific Maritime Association brings the stability and confidence that customers have been seeking,” Port of LA Executive Director Gene Seroka said in a statement.

Earlier this week, Seroka said about 15% of its business had moved to the East and Gulf Coast ports as importers, exporters and business associations hedged their bets about service disruptions along the Pacific.

ILWU dockworkers have been doing their jobs without a contract since last July. Exact terms of the six-year contract were not disclosed and need to be ratified by both the ILWU and PMA.

In a statement, President Joe Biden hailed the agreement and congratulated both sides for reaching an accord.

"I want to thank Acting Labor Secretary Julie Su who used her deep experience and judgment to keep the parties talking, working with them to reach an agreement after a long and sometimes acrimonious negotiation," the president said. "Above all I congratulate the port workers, who have served heroically through the pandemic and the countless challenges it brought, and will finally get the pay, benefits, and quality of life they deserve."