ILA: Threat of Strike at US East and Gulf Coast Ports “Growing More Likely”

With the threat of a strike looming over U.S. East Coast and Gulf Coast ports, the International Longshoremen’s Association is increasing its rhetoric and digging in pointing out that there are only 80 days left on the current contract. Talks remain stalled after the union alleged that Maersk’s APM Terminals was using an auto gate system and may be encroaching on its jurisdiction.

The union’s strategy was to resolve all local jurisdiction contracts and then commence negotiations for the master contract. They however canceled the negotiations which had been scheduled to start a month ago citing the automation issue and said they would not start the talks until the dispute of the system in Mobile is resolved. 

“Only 80 days remain before the end of our current contract and we are waiting on USMX,” said ILA President Harold J. Daggett. “The actions of violating our current Master Contract by some of their members caused us to cancel scheduled negotiations with USMX in early June.”

He wanted in the latest statement that negotiators for the union and the employers represented by the United States Maritime Alliance (USMX) “are running out of time” to avoid a coastwide strike on October 1, 2024. The union is now saying that it is “growing more likely” that there will be a strike.

The ILA has a firm stance against increased port automation and singled out the auto gate system to highlight its position. They contend that APM introduced the system that makes it possible to process trucks without ILA labor. Further, they allege that they have observed “an increasing number of IT personnel on marine terminals,” with concern that APM Terminals is encroaching on the union’s jurisdiction. They also questioned if the system is being used in other ports.

Economists and the made trade organizations for retailers and apparel manufacturing have all warned of the potential impact a strike could have on already fragile supply chains. There have been repeated calls for the Biden administration to step in to bring the two sides to the negotiating table and guide the process. The Department of Labor helped to resolve the 2023 issues with the West Coast ports which had spent a year negotiating their dockworkers contract.

Daggett said in response to those calls, “We will not entertain any discussions about extending the current contract, nor are we interested in any help from outside agencies to interfere in our negotiations with USMX,” said President Daggett. “This includes the Biden Administration and the Department of Labor.”

Experts have questioned if the union would proceed with a potentially devastating strike five weeks before the presidential elections in the United States. Daggett asserts that the membership is 100 percent behind the union leadership and willing to “hit the streets” if the union’s contract demands are not met.

In addition to blocking automation in the ports, the ILA has said it is looking for recognition of the longshore workers' efforts at keeping the ports functioning during the pandemic. The West Coast union, the International Longshore and Warehouse Union (ILWU), a year ago reached an agreement for a new contract which Reuters reported contained a 32 percent pay increase over the six-year agreement.

The ILA and USMX and its predecessor organizations have a long history of positively resolving contracts. Both the 2018 and 2012 negotiations were resolved without work interruptions and indeed there have been 10 contracts since a strike in 1977.