The Port of Los Angeles has signed a 10-year project labor agreement with the Los Angeles/Orange Counties Building and Construction Trades Council, which has been approved with unanimous approval from the Los Angeles Board of Harbor Commissioners. The agreement addressed ages, benefits and work rules for workers hired to work on designated Port projects. Those designated projects include 38 planned infrastructure projects, which account for $780 million in wharf improvements.

“One in nine jobs in the region is tied to port complex operations, so the fact that we've locked in a project labor agreement for a decade is great news for the region. This insures stability on major projects,” Phillip Sanfield of the Port of Los Angeles, tells GlobeSt.com. “It means there won't be delays on our construction projects due to labor issues, and we don't need to get bogged down in red-tape approving labor agreements for specific projects. This is a blanket agreement for an initial list of 38 planned and projected projects representing more than $780 million. And we'll likely add more to the list during the course of the agreement. Another major component of this agreement is that at least 30% of those hired for jobs will be local residents.”

The approved Port Labor agreement will replace a previous five-year agreement. The stipulations of the agreement include requirements that 30% of the work or one-third of workers is performed by local residents or residents in high unemployment areas of Los Angeles, apprentices must complete 20% of the work, and transitional workers perform at least 10 percent of the work. There are significant benefits of the 10-year agreement for the port, including increased efficiency and hiring. “This is agreement is for 10 years, the first of its kind for a port in California. Our previous PLA was for five years,” says Sanfield. “So by doubling the time period, it's a huge vote of confidence and stability for workers in the region.”

The new infrastructure improvements will ensure that the port—which is among the top ports in the world—remains efficient and competitive. “The Port of Los Angeles is the busiest port in the Western Hemisphere, with 7,500 acres and 43 miles of waterfront. We've had record volumes in 2016 and are on pace to break another volume record this year,” Sanfield says. “Among our core advantages is world-class infrastructure. We continue to spend hundreds of millions of dollars each year investing in our terminals, roadways and other projects to make sure that we keep our infrastructure world class. We continue to look for ways to improve efficiency and optimize our supply chain. This PLA makes sure that we have the best labor unions in the world ready and on call to provide their skilled labor as we move forward with our projects.”

The Los Angeles City Council will hold a final vote of approval. The PLA is expected to take effect in the next three to six months.

Instant Insights /

L.A. Port Signs Major Labor Agreement

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