ILA Breaks Off East Coast Port Contract Talks Over Automation
Just two days into their first round of negotiations since ending a three-day strike at the East and Gulf Coast ports, union dockworkers have already walked away from the master contract talks.
The International Longshoremen’s Association (ILA) broke off the contract negotiations Tuesday afternoon, saying that their employers, the U.S. Maritime Alliance (USMX) introduced language in their proposal for semi-automated equipment to be used at the ports.
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The union rejected the proposal, calling the move a “renewed attempt by USMX to eliminate ILA jobs.”
Automation has been a central point of contention for the union, with ILA president Harold Daggett insisting throughout the negotiations that the labor group wants a total ban on the use of automated equipment at the ports.
A CNBC report said the use of cranes with semi-automated capabilities is holding back the negotiations. These cranes are operated by ILA workers using a remote control in an indoor operator’s station.
In a post on LinkedIn Wednesday, the American Apparel & Footwear Association (AAFA) said it was “very disappointed” with the ILA’s decision.
Another breakdown in the negotiations could increase the chances of a second strike occurring across ports from Maine to Texas on Jan. 15, 2025. The ILA extended its current contract to that date when it came to terms on a 61.5 percent wage hike spread over six years. The union hasn’t taken that raise yet, as it would require them to sign a “no-strike clause.”
“The ILA’s resolve remains strong not to surrender any ILA jobs,” the union said in the statement. “We are disappointed that USMX would attempt to disregard our ILA’s well-known position opposing job-cutting automation and semi-automation. Once again, our employers who are raking in billion-dollar profits annually have exposed their ultimate goal of wanting to eliminate as any ILA jobs as possible, and replace our ILA longshore workers with robotic equipment.”
The union said its rank-and-file members fully support the position and remain hopeful that the USMX will “alter its unwinnable strategy.”
The USMX defended its position, saying that the ILA is insisting on an agreement that “would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades.”
In the face of the ILA’s concerns, the USMX insists it is not seeking technology that would eliminate jobs.
“What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses and workers alike,” said the USMX.
Under the current contract’s terms, the ports are not allowed to use fully automated terminals or equipment, with the technology defined as “machinery/equipment devoid of human interaction.” The terms also require that the terminals didn’t implement semi-automated equipment or technology “until both parties agree to workforce protections and staffing levels.”
In June, the ILA halted master contract talks due to the use of an automated gate system at the Port of Mobile. The union didn’t resume negotiations with the USMX until the strike occurred.
A second strike would further complicate the situation for U.S. importers, as the anticipated strike date is just five days before the inauguration of President-elect Donald Trump and two weeks before the Chinese factories go on break for Lunar New Year.
In anticipation of a strike redux alongside the additional headwinds, the National Retail Federation expects more cargo to be imported into the country in November and December, mirroring the decision by many shippers throughout the summer to pull forward their retail orders in anticipation of the Oct. 1 strike.
The ILA and USMX had initially been scheduled to meet in Teaneck, N.J. for four days throughout the week. They were planning to work out agreements on “all remaining items,” according to the union. Aside from the automation dispute, the partners had positive progress on multiple issues, said the maritime employers.
Additional issues that still need to be resolved include worker jurisdiction protections, as well as demands for improved health care benefits and the full share of container royalties. Those royalties are payments made to dockworkers to compensate for the loss of jobs due to the use of containerized shipping.
Both parties said that they hope to resume negotiations.
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