ILA Union Says East Coast Port Strike ‘Growing More Likely’

The clock is ticking on contract negotiations at the East and Gulf Coast ports .

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In a Friday statement, the International Longshoremen’s Association (ILA) said the threat of a strike after the current Sept. 30 expiration deadline is “growing more likely,” as the negotiations remain at an impasse.

Harold Daggett, the president and chief negotiator of the ILA, said that the maritime employers represented by United States Maritime Alliance (USMX) “are running out of time” to negotiate a new master contract agreement and avoid a coastwide work stoppage across 36 ports from Maine to Texas.

“Only 80 days remain before the end of our current contract and we are waiting on USMX,” Daggett said Friday. “The actions of violating our current master contract by some of their members caused us to cancel scheduled negotiations with USMX in early June.”

The violations refer to the ILA’s discovery that Maersk-owned APM Terminals and Maersk Line were using an “Auto Gate” system at Alabama’s Port of Mobile, which powers the gate that enables trucks to enter and exit a terminal and be autonomously processed without union labor. This system is reportedly being used in other ports as well, the union said.

Upon this discovery, the ILA said in June that it would not meet with USMX until the auto Gate issue is resolved.

Talks have not resumed in the months since.

Daggett and the union have been banging the anti-automation drum for years now amid concerns that the equipment could cost union jobs. It’s current contract with the USMX states “there shall be no fully automated terminals developed and no fully automated equipment used during the term of this Master Contract.”

The term “fully automated” is defined as machinery/equipment devoid of human interaction, according to the current deal. The agreement does give room for the implementation of semi-automated equipment, but both must parties agree to certain workforce protections and staffing levels.

Both the ILA and the USMX have remained tightlipped over the terms related to the new deal, particularly around the use of automation going forward. But the union’s stance against the Auto Gate indicates that it is not letting up on prior terms.

According to the ILA statement, the union is still waiting on results from an audit for jobs created out of new technology—a report they say they have been anticipating for almost two contract periods.

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The ILA has observed an increasing number of IT personnel on marine terminals, with concerns that APM and Maersk’s IT departments in Charlotte, N.C., are encroaching on their jurisdiction.

Any new contract would likely to be similar to the reported 32 percent wage increase dockworkers at the West Coast ports got last summer when they agreed to a new six-year deal.

The pact also included an additional “hero bonus” package for working through the early stages of the Covid-19 pandemic.

Whenever the negotiations resume, the ILA said “it expects shipping companies to recognize the contributions ILA longshore workers made during the pandemic,” in another sign that a similar package will be part of the negotiation process.

The union has been critical of the profits that ocean carriers have generated since the start of 2024 in the wake of the Red Sea disruptions that helped escalate ocean freight rates.

Daggett said the ILA rank-and-file members are “100 percent behind him,” reaffirming that the workers are willing the “hit the streets” on Oct. 1 if the union’s contract demands are not met.

“We will not entertain any discussions about extending the current contract, nor are we interested in any help from outside agencies to interfere in our negotiations with USMX,” said Daggett. “This includes the Biden Administration and the Department of Labor.”

While the union is insisting on no federal intervention, businesses are hoping for a different outcome. Late last month, roughly 160 shipper associations and trade groups including the U.S. Chamber of Commerce and the National Retail Federation sent a joint letter to the White House to immediately work with both parties to resume contract negotiations.

“Such disruptions and their negative economic impact are well documented. We witnessed a significant shift of cargo from the West Coast to the East Coast and Gulf Coast ports because of the challenges and uncertainty during the last West Coast port labor negotiations,” the letter stated. “While much of that business has remained at the East Coast and Gulf Coast ports, we are starting to see a shift back to West Coast gateways, where a long-term contract is in place, especially as we enter the busy peak shipping season.”

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