Sept. 30 – that’s the date the current six-year contract between the International Warehouse Association, representing dock workers at East and Gulf Coast ports and terminals, and the Maritime Alliance (USMX), which looks after the interests of the corresponding container ports and terminals, expires.
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| ILA president Harold Daggett, in a recent statement, accused the USMX of underpaying workers. |
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ILA executives have recently said the longshoreman will strike the next day if a contract is not reached by that date, which right now looks highly unlikely, though the Federal government has a number of tools it can use to stop or end a walkout, given the likely impact on the country and the economy.
About 36 ports are under the ILA’s jurisdiction., from Maine to Texas. If a major strike were to occur it would be the first coast-wide action in the US since 1977.
Depending on the source, either 25,000 or 45,000 workers are represented by the union.
Ports involved are some of the nation’s largest, including New York, Savannah, Houston, Miami and New Orleans. Together they handle about 41% US containers received or shipped. Peak season is in full swing, increasing the stakes.
About two weeks ago, the National Retail Federation led a group of 147 companies and trade groups in sending a letter to the White House calling on the Biden administration to work with the ILA and USMX to get a new deal done. However, President Biden said last week he would not prevent labor action at the ports.
Talks between the ILA and USMX have incredibly been off since June after the union accused USMX member the Port of Mobile of using container handling automation not allowed in the current contract.
As usual in these situations, the rhetoric is getting more heated as the contract deadline nears.
ILA president Harold Daggett, in a recent statement, accused the USMX of underpaying workers.
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“My members have been preparing for over a year for that possibility of a strike,” Daggett added.
 USMX said in a statement that it was “disappointing” that talks with the union broke down, and that “the only way to resolve this impasse is to resume negotiations, which we are willing to do at any time.”
Cargo diversions and other contingency plans have been set into motion by shippers and logistics providers, including shifting volumes to West Coast ports, CBS News reported. However, these options come with higher costs and their own set of challenges.
“With the holiday shopping season approaching, businesses may be forced to scramble for alternatives to meet consumer demand, risking either product shortages or costly air freight shipments to maintain inventories,” the UK’s Financial Times noted this week.
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