In recent developments, discussions between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) regarding the master labor contract for East Coast and Gulf Coast ports continue to evolve. After a series of work stoppages in early October, the parties agreed to a temporary extension of the existing contract until January 15, 2024. This extension aimed to provide more time to negotiate additional terms, with the use of automation emerging as a primary sticking point.
Today’s news reveals a setback in the negotiations, with both sides sharing differing perspectives on the impasse:
- USMX Statement: “Over the last two days, USMX met with the ILA to bargain and resolve all remaining outstanding issues needed to reach agreement on a new master contract. While we had positive progress on a number of issues, we were unable to make significant progress on our discussions that focused on a range of technology issues. We are looking forward to resuming negotiations with the ILA.”
- ILA Statement: “Talks broke down when management introduced their intent to implement semi-automation—a direct contradiction to their opening statement where they assured us that neither full nor semi-automation would be on the table.”
While USMX maintains that the proposed technology discussions focus on enhancing worker safety, the ILA continues to view automation as a potential threat to job security.
With the January 15, 2025, deadline fast approaching, these unresolved issues could soon intersect with the incoming administration’s approach to labor relations. The current administration has encouraged self-negotiation between the ILA and USMX, but the new administration may adopt a different stance.
In light of the ongoing negotiations, Sobel Network Shipping Advisors continues to recommend keeping alternative transportation and rerouting options in place, as emphasized in our October 4th webinar. This approach remains prudent until a definitive agreement is reached, ensuring that supply chains remain resilient.
Update on Canadian Port Strikes
In addition to the challenges at US ports, recent labor strikes at Montreal and British Columbia ports have intensified transportation pressures. Canadian Labor Minister Steve MacKinnon recently ordered the Canadian Industrial Relations Board to intervene, extending current collective agreements and mandating arbitration. However, many industry leaders view this intervention as delayed, with unions expressing intent to contest the order legally.
Although operations have resumed, the week-long shutdowns at BC ports have led to significant backlogs, which will take time to resolve even under standard working conditions.
Sobel Network Shipping Advisors will continue to monitor these developments closely, offering guidance to ensure continuity and support throughout these complex situations.
