** Coalition Urges ILA and USMX to Continue Negotiations for New Labor Pact**
As the deadline for a contract extension approaches, a coalition of shippers is calling on employers and longshore workers unions along the East and Gulf coasts to reinitiate negotiations to prevent another port strike.
In a letter directed to Harold Daggett, President of the International Longshoremen’s Association (ILA), and David Adam, Chairman and CEO of the United States Maritime Alliance (USMX), a group of 267 trade associations, led by the National Retail Federation (NRF), emphasized the “imperative” for both parties to return to the negotiating table and reach a new labor agreement before the current contract expires on January 15.
“Significant issues still exist between the parties, but we firmly believe that the only way to resolve them is to remain engaged in negotiations,” the coalition stated in the letter shared with the media.
Terminal operators and ocean carriers, represented by USMX and the ILA, had previously agreed to an extension following the intervention of the Biden administration, which helped resolve a three-day strike in early October that disrupted operations at 36 East and Gulf coast ports. During this period, the union secured a 62% pay increase over six years for 45,000 dockworkers while discussions continued on other critical matters, particularly port automation.
However, talks stalled on November 13 due to disagreements over employer proposals to introduce semi-automated container cranes, which the union argued could threaten jobs. The USMX countered that these cranes are essential for enhancing the competitiveness of U.S. container hubs, asserting that implementation would increase efficiency and create new union jobs to manage the growing container traffic.
“We recognize that automation and technology remain the core issue of contention,” the coalition noted. “We believe there is a viable path for both parties to navigate this challenge. It is crucial for our ports and terminals to modernize to stay globally competitive and effectively manage increasing trade volumes.”
The coalition pointed out that successful port modernization requires a “genuine partnership” between labor and management, and expressed concerns that sporadic negotiations are creating significant “uncertainty” in the global supply chain. They highlighted ongoing financial repercussions stemming from the October strike.
“Companies continue to adopt mitigation strategies in light of the looming risk of another strike in mid-January should a new contract not be finalized,” they added.
In an accompanying statement, the NRF indicated that the contract extension concludes just before the potential transition to a second Trump administration, suggesting a more forceful response to any strike action than that exhibited by President Biden.
