White House Meets with Terminal Operators Ahead of Looming ILA Strike

Going into the final weekend before the threatened strike that would stop container and RoRo operations at 36 U.S. ports, the White House summoned representatives of the terminal operators and employers to a meeting. In the official readout on the meeting, the White House said that it had a similar conversation with the leaders of the International Longshoremen’s Association during the week.

The official report said that the meeting was headed up by Transportation Secretary Pete Buttigieg, Acting Labor Secretary Julie Su, and top White House economic adviser Lael Brainard. They were reported to be meeting with the U.S. Maritime Alliance officials although it did not specify which executives were representing the organization. USMX’s membership consists of container carriers, terminal operators, and port associations.

The meeting comes as the employers and union remain at a deadlock and have not had formal negotiating sessions for the master contract that covers approximately 45,000 longshore workers at ports from Maine to Florida and along the U.S. Gulf Coast. USMX acknowledged earlier in the week that it had received outreach from the federal government while saying the ILA continued to refuse to resume negotiations. USMX failed an “unfair labor” notice seeking the government to compel the ILA leadership to negotiate.

In the war of words being played out in statements, the leadership of the ILA said there had been contact between the sides but called the wage proposals from the employers “unacceptable.” They said the employers were unfair in the low wage offer. Automation issues are not being mentioned but are reported to be a major element of the new contract with the ILA saying it rejects all automation or semi-automation as a job killer.

White House officials confirmed today’s meeting as well as the messages with the ILA without providing any details. They said they were conveying directly "that they need to be at the table and negotiating in good faith fairly and quickly." 

Unidentified individuals from the Biden administration previously said they had not moved in the nearly four years of the presidency to break a union strike and it was not their intent now. They believe disputes need to be settled by negotiation, but also are closely looking at the current situation and the ramifications for the supply chain and the economy. Last year, Jule Su was credited as being instrumental in driving the contract agreement between the West Coast employers represented by the Pacific Maritime Association and the International Longshore and Warehouse Union.

Analysts point out that the White House has few options especially just weeks before the presidential elections. Trade organizations and elected officials are all pressuring the administration to intervene. It could invoke the Taft-Hartley Act which would mandate a cooling off period and negotiations. Short of that, its only option is outreach and cajoling the two sides back to the negotiating table. 

The six-year contract is ticking down due to expire at midnight on September 30 with the ILA saying it will not extend past the deadline. The union has been preparing for a long time for what its leadership has called “the biggest battle the ILA has faced in 47 years.” The last strike was in 1977 and lasted 44 days.