Following a temporary agreement between the U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) to defer a strike called for November, there has been no meaningful progress in negotiations. Although some points in contention have been resolved, the major stumbling block is introduction of automation that threatens job security.
Shippers face the prospect of a strike on January 15th, an event that would cripple ports from Maine to Galveston and disrupt supply chains and will cost U.S. consumers and the economy. The potential impact of a strike was evidenced by a three-day demonstration in October.
A consortium of shippers and potentially affected companies has addressed a letter to the president of the ILA, Harold Daggett and the CEO of USMX, David Adam urging them to resume negotiations and conclude a satisfactory agreement. Concessions will obviously have to be made and the time for vacillation has passed.
Contrary to previous Republican administrations that have invoked the Taft-Hartley Act in the face of a strike, President-elect Trump has sided with the Union and is exercising his infinite ability to persuade the USMX to make concessions on automation. He stated “The amount of money saved instead of employing more workers is nowhere near the distress, hurt and harm it causes for American workers”
The USMX believe that automation is required to increase the speed and volume of loading and unloading containers from vessels that will increase job opportunities in the future.
Let us hope that a strike will be averted as it will be disruptive and ultimately costly to all stakeholders.