The labor deal between US East and Gulf Coast ports and the International Longshoreman’s Association (ILA) may be unraveling. The current agreement expires at the end of September. It was a six-year deal.
The major issue at present is an Auto Gate system Maersk and APM Terminals are using that processes trucks autonomously, with no ILA labor. The union claims this directly contradicts what was agreed in the last union contract.
Automation and protection of ILA jobs have for years now been a bone of contention between the union and the alliance of container carriers, direct employers, and port associations that serve US ports, which is called the United States Maritime Alliance (USMX). The same was true on the West Coast, when the recent strike was averted by a new contract with the Pacific Maritime Association.
There’s no easy way to find resolution. Automation reduces jobs for longshoremen, though it creates support jobs, for which most union longshoremen are not qualified. And retraining these longshoremen may be difficult, even if some way could be found to fund it. Each side thinks the other ought to pay for the retraining. And in the short run, there will still be a workforce reduction.
The September 30, 2024 expiration date looks like it may not be met; however both sides have usually agreed to continue work as usual while still negotiating. However, openly violating terms of the contract, especially without full discussion with the union, is a good way to get their dander up, and prolong the negotiations.
Best to practice transparency and full disclosure.
By Jeff Berman June 10, 2024
Supply Chain and Logistics 