LOS ANGELES — The contract that keeps thousands of dockworkers on the job at ports from San Diego to Seattle expired Tuesday afternoon, but both sides pledged to continue negotiations without a disruption in the billions of dollars of trade that crosses the West Coast waterfront.
The union which represents dockworkers and the association which represents shipping lines and terminal operators at 29 ports issued a joint statement saying that while the current six-year contract will not be extended, both sides will keep talking — and working.
No resolution is expected for weeks, with tough issues including whether workers should shoulder more of the hefty cost of health care yet to be resolved.
As talks drag out, jitters will grow among the companies that last year imported or exported nearly $900 billion worth of cargo through West Coast ports.
The union and maritime association acknowledged that labor peace is essential to keeping those ports competitive, especially with larger vessels able to sail from Asia directly to large East Coast markets once an expansion of the Panama Canal is completed.
The economic damage from a work stoppage now would be about $2 billion per day, according to a recent analysis by groups representing retailers and manufacturers.