With the potential for a second disruptive East Coast port strike only a week away, shippers are urging the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) to reach a deal before the dockworkers’ current contract extension expires on Jan. 15.
The Shippers Coalition, a trade group representing companies in the freight transportation system, said Tuesday that a strike by the ILA’s 45,000 union members who work at East Coast and Gulf Coast ports would have a devastating impact on the U.S. supply chain and consumers.
After a three-day strike in October, the ILA and USMX reached a tentative deal that calls for a 62% wage hike over six years, but left issues related to automation and job security unresolved. The pay raise may be off the table if the impasse is not resolved by the Jan. 15 deadline and a second strike occurs.
“If a fair negotiated agreement cannot be reached by Jan. 15, we would urge both parties to extend the contract extension and continue to negotiate,” said Alexis Oberg, deputy executive director of the Shippers Coalition in a press statement on Jan. 7.
“Action must be taken immediately to prevent long-term consequences for U.S. retailers, consumers, and the economy at large,” Oberg said. “We urge both President Biden and President-elect Trump and their teams to intervene in the negotiations and use all tools in their toolbox to prevent a strike and to ease supply chain disruptions should a strike occur.”
USMX, which represents employers of the maritime industry at ports from Maine to Texas, issued a statement last month saying that modernizing port operations through automation and protecting union jobs are not mutually exclusive.
“Modern technology is proven to dramatically increase the amount of cargo that can be moved through a port annually,” the USMX said on Dec. 20. “ILA members make more money when they move more cargo, and ports need to hire more workers to manage that growth.”
The ILA, however, contends that efforts to automate ports will mean fewer jobs, not more.
“This isn’t about safety or productivity—it’s about job elimination,” Dennis A. Daggett, executive vice president of the ILA, told union members on Dec. 2. “The ILA is not against progress, innovation, or modernization—but we cannot support technology that jeopardizes jobs, threatens national security, and puts the future of the workforce at risk.”
