East Coast port labor talks break down; Jan. 15 strike still on
Contract negotiations broke down between dockworkers and their port employers this week, once again due to the issue of automation.
NEW YORK – A new labor contract must be agreed to by Jan. 15, 2025, or another strike will be on the cards.
Dockworkers, represented by the International Longshoreman’s Assn. (ILA), went on strike for three days in early October until a tentative agreement was reached on wages. The Jan. 15 deadline was agreed upon to resolve other outstanding issues, namely automation.
According to an ILA Facebook post written Wednesday, talks had resumed this week and had started out positive before deteriorating.
“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,” the post stated. “They claimed their focus was on modernization, not automation.”
The ILA goes on to say it supports modernization “when it leads to increased volumes and efficiency but only when a human being remains at the helm.”
The U.S. Maritime Alliance (USMX), which represents the ports, also put out a statement Wednesday:
“Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades – making it impossible to evolve to meet the nation’s future supply chain demands,” it read. “The USMX has been clear that we are not seeking technology that would eliminate jobs.”
The threat of the strike has caused some shippers to place earlier container orders. Other events are encouraging orders to be moved up as well: the threat of future tariffs and Lunar New Year.
“With the U.S. presidential election behind us, shippers are also concerned about potential tariff increases on imports beginning in 2025,” said Rachel Shames, vice president of pricing and procurement at freight broker CV International. “It’s becoming more likely that many shippers will front-load inventory once again to stock up ahead of tariff increases and potential labor disruption. With the Lunar New Year holiday beginning January 29, there are indications that we will see an import volume surge over the next two months. Exports, which are relatively stable, may also ramp up due to concerns about retaliatory tariffs on U.S. goods.”
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