Shippers Demand Resolution: Longshore Union and Employers Must Restart Contract Talks
With just weeks remaining until the expiration of a crucial contract extension, a coalition of shippers is calling on East and Gulf coast port employers and unionized longshore workers to return to the negotiation table. The aim is to prevent a disruptive port strike that could reverberate throughout the global supply chain.
In a letter addressed to International Longshoremen’s Association President Harold Daggett and David Adam, chairman and chief executive of the United States Maritime Alliance, the National Retail Federation (NRF), together with 266 other trade associations, emphasized the urgency. It stated that it is "imperative" for both parties to resume bargaining and secure a new labor agreement before January 15, when the current contract is set to expire.
"We know significant issues remain between the parties," the shippers acknowledged in their communication. "However, we continue to believe the only way to resolve these issues and come to an agreement is to actually stay at the negotiating table."
Terminal operators and ocean lines, represented by USMX, and the ILA agreed to extend the contract following a three-day strike in early October that halted container and vehicle handling at 36 East and Gulf coast ports. This strike was ended with the intervention of top officials, concluding with the union securing a 62% wage increase over six years, while other negotiation topics such as port automation remained unresolved.
Negotiations hit a snag on November 13 over employer demands for the introduction of semiautomated container cranes, which the union claimed would result in massive job losses. The USMX countered that these cranes are essential for keeping U.S. container hubs competitive. They argue the cranes will boost efficiency and create new jobs for union members to manage increased container throughput.
"We understand that automation and technology continue to be the largest areas of disagreement between the parties," noted the shippers. "There is a path forward for addressing this issue. Our ports must modernize and be ready to handle rising trade volumes, both imports and exports, to maintain global competitiveness."
The shippers emphasized that port modernization relies heavily on "a true partnership between labor and management," warning that the lack of a steady negotiating process is introducing "uncertainty" into the supply chain.
Additionally, businesses are still experiencing the aftereffects of the early October strike and are implementing strategies to mitigate the impact of a potential strike in mid-January, should a new contract not be finalized.
This push for urgency comes with an awareness of the impending shift to a second Trump administration, suggesting more assertive governmental involvement should negotiations falter.
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