A strike or work slowdown at West Coast ports is not in the cards.

That’s the word from the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) employer group, which are negotiating a new contract for ILWU West Coast port workers.

In a joint statement released this week, the organizations said they are not “preparing for a strike or lockout, contrary to speculation and news reports.”

It’s good news for importers in the promotional products market and other industries.

If contentiousness in negotiations were to lead to work slowdowns or stoppages, there could be deep-reaching negative repercussions for U.S. supply chains. These include exacerbated port congestion that makes it much harder to get imports stateside, potentially leading to inventory shortages and higher prices for promo products, consumer goods and more.

While ILWU and PMA say a work stoppage isn’t imminent or foreseen, they also noted that the sides do not expect to agree on a new contract for port workers by the current contract’s July 1 expiration. Still, port work – and contract talks – will continue until a deal is reached, the sides say.

Shipping/port industry experts have said that a point of significant contention is the desire of the PMA to introduce more automation in ports – a technology-fueled move that, advocates say, would increase efficiencies and help modernize operations to make them more on par with what’s seen elsewhere in top global ports. The union is leery of greater automation, as leaders believe it will lead to job loss for members.