The parties involved in the labor dispute at U.S. East Coast ports have resumed negotiations.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) will meet in November to finalize an agreement for the ongoing labor dispute at U.S. ports.
In a joint press release, the ILA and USMX announced that both parties involved in the U.S. East Coast port labor dispute will return to the negotiating table in November to reach a comprehensive master agreement. The statement emphasized that all unresolved issues must be addressed in order to finalize a new agreement. Earlier in October, the two sides reached a temporary agreement valid until January 15, 2025, which provided a brief respite, but all pending matters must be resolved through negotiations.
Both the International Longshoremen’s Association and the United States Maritime Alliance expressed their willingness to return to the negotiating table and their hope to reach a new agreement as soon as possible. The last collective bargaining agreement for East Coast port workers expired on September 30, and on October 1, 45,000 workers went on strike. This was the first strike by East Coast port workers since 1977 and drew significant attention. The Biden administration intervened to facilitate a swift resolution. On October 3, the parties agreed to a 61.5% wage increase for port workers over a six-year period.
Additionally, some areas of the collective agreement, such as automation clauses and ensuring job opportunities for union and ILA members at U.S. ports, need to be negotiated by January 15.
Fearing a second strike, a large volume of cargo has been redirected to West Coast ports.
Chris Peterson, CEO of Newell Brands, the maker of Graco high chairs and Crock-Pot cookware, stated that the company is shifting goods expected to be needed in the second half of January to the U.S. West Coast, including hundreds of containers of essential materials. Peterson anticipates that if dockworkers strike again, it could last up to two weeks.
A New York-based freight forwarding company said, estimates a 60-70% chance of a second strike occurring, leading his clients to also avoid East Coast ports. Regarding union negotiations, Stile remarked, “The main issue has always been automation, not money.”
The union views port automation as a job killer, whereas employers believe automation can increase profitability. ILA union leader Harold Daggett hopes that employers will abandon automation plans that threaten jobs; however, U.S. ports risk falling behind other major global competitors.
The union announced on October 25 that labor and management plan to return to the negotiating table in November. Yet, many freight companies remain skeptical about whether major ports like New York and New Jersey, Houston, and Savannah can reach an agreement without another strike. Consequently, despite record-breaking volumes at major West Coast ports like Los Angeles and Long Beach over the summer, many shippers continue to redirect cargo to West Coast ports.
