Dive Brief:
- Port workers in California have agreed to a contract that will effectively end nine months of conflict at the ports of Los Angeles and Long Beach.
- A tentative, five-year contract was negotiated and agreed upon by all parties; the International Longshore and Warehouse Union must approve the terms to finalize the deal.
- Although a resolution is underway, the extended duration of the strike could still impact the recycling industry, which is in the process of recovering from the standstill.
Dive Insight:
The Institute of Scrap Recycling Industries (ISRI) said that the labor dispute could have “long-term consequences” for the industry, even through the strike has ended.
According to ISRI, in 2014, West Coast exports plummeted 12% compared with figures from 2013.
Robin Wiener, the president of ISRI said: “Already facing a drop in prices, recyclers witnessed a decline in exports which left many forced to cut their workforce and set aside investments needed to grow their business. There may still be long-term consequences we face such as lost overseas markets.”
Patty Moore, of the Plastic Recycling Corp. of California, said the dispute was devastating to the paper industry and that it could take up to two months to clear the materials that have piled up.