With the possibility of another East Coast port strike looming, shippers are calling for a resolution between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). The current contract extension for dockworkers is set to expire on January 15.
The Shippers Coalition, representing companies in the freight transportation system, warned that a strike by the ILA's 45,000 union members at East Coast and Gulf Coast ports could severely impact the U.S. supply chain and consumers.
In October, a three-day strike led to a tentative agreement proposing a 62% wage increase over six years. However, issues regarding automation and job security remain unresolved. The wage hike might be withdrawn if no agreement is reached by January 15.
“If a fair negotiated agreement cannot be reached by Jan. 15, we would urge both parties to extend the contract extension and continue to negotiate,” stated Alexis Oberg, deputy executive director of the Shippers Coalition.
Oberg emphasized the urgency of preventing long-term effects on U.S. retailers and consumers: “Action must be taken immediately to prevent long-term consequences for U.S. retailers, consumers, and the economy at large.” She urged intervention from President Biden and President-elect Trump to avoid a strike and mitigate supply chain disruptions.
USMX has argued that automation can coexist with job protection. “Modern technology is proven to dramatically increase the amount of cargo that can be moved through a port annually,” USMX noted last month. They added that increased cargo movement leads to more jobs as ports expand operations.
Conversely, the ILA expressed concerns about job losses due to automation efforts. Dennis A. Daggett, executive vice president of the ILA, stated: “This isn’t about safety or productivity—it’s about job elimination.” He emphasized that while not opposed to progress or modernization, they cannot support technologies threatening jobs and national security.
