An agreed extension between the International Longshoremen’s Association (ILA) and the United States Marine Alliance (USMX), negotiated after the three-day strike in early October, is due to expire on January 15, 2025. If this date arrives without an agreed-upon Master Contract, there is the potential for another strike to occur at nearly all US East and Gulf Coast ports.
Here is an update on where the negotiations stand.
Contract Talks Have Broken Down
Both the ILA and USMX announced they would return to the bargaining table in early November for a week of discussions and negotiations. However, the talks quickly broke down, with both sides leaving the table early in the process.
Since then, talks have not resumed, and no plans have been announced to return to the table. With the holiday season approaching and the deadline quickly following, there is concern about how much time remains for any potential talks, especially since none are currently scheduled.
The main issue is automation at port terminals. The ILA has long contended that automation is a major threat to American jobs, while USMX argues that automation is necessary for efficiency improvements and the long-term sustainability of competitive port infrastructure in the US. In many ways, this issue is more difficult to resolve than the wage issues that plagued the negotiations prior to October 1, 2024.
Messaging from ILA and USMX Turns Sour
On December 3, both the ILA and USMX released separate statements, essentially making their cases publicly for or against pushes for automation.
Both statements contained indications of positions on which neither side would budge. Additionally, the ILA’s statement, for the first time since the contract extension was agreed, explicitly mentioned their willingness to strike on January 16, when the extension period ends. Notably, they did not say they would strike, which is a small but significant difference from their tone leading up to October 1, when it was clear the ILA would strike without a contract.
Furthermore, the ILA changed their Facebook banner to say, “If it’s a fight they want, it’s a war they will get,” which seemed to signal a change in tone.
Adding to concerns, it was reported this week that ocean carriers are becoming dissatisfied with their USMX representatives for being too conciliatory in their approach to negotiations. USMX was mostly quiet during the lead-up to the October wage agreement, and reports suggest that carriers do not intend to relent easily on automation this time around.
President-Elect Trump Takes a Stance
The election of President-Elect Trump has raised questions about how the incoming administration would view the dispute. On one hand, he has shown support for labor and has a good relationship with ILA Chief Harold Daggett. In fact, Mr. Daggett strengthened this relationship by releasing a statement in support of President Trump’s pick for Labor Secretary.
However, President Trump has also taken anti-union stances in the past, with a general attitude of being a “fixer” who would not allow something like a strike to disrupt activity at U.S. ports. This raised some hope that, if faced with a strike situation, the administration could take action, including potentially invoking the Taft-Hartley Act.
This hope has diminished significantly, as President Trump released statements on social media expressing full support for the ILA in their fight against ocean carriers. While not explicitly stating he would support strike action, it is difficult to see a situation in which the administration would invoke Taft-Hartley or other measures, as those would be seen as a win for USMX.
Mohawk Global will continue to monitor negotiations and provide updates as necessary.
By Chris Lindstrand, Vice President of International Transportation