Longshoremen strike threat for Oct. 1 could disrupt NJ ports at peak shipping season

The International Longshoremen’s Association has threatened to strike if a new contract with East Coast port terminal and shipping companies is not ironed out by the time the old contract expires Oct. 1.

That would effectively shut down some of the busiest ports in the country, including the Ports of New York and New Jersey, potentially disrupting the delivery of billions of dollars worth of consumer goods during peak shipping season.

Leaders of the ILA, based in North Bergen, are looking for a significant pay hike for their members, saying they deserve a share of the profits that shipping and port terminal companies have made as cargo volume remains high after the demand caused during the COVID-19 pandemic.

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“The ILA proposal not only makes up for the past few years of extremely high inflation, and long-term inflation going back decades from when a $1 per hour increase was a fair raise, but the proposal also ensures the financial security of ILA members and their families through the uncertainty of the coming years,” ILA President Harold J. Daggett told about 250 ILA delegates who met Wednesday in Teaneck to discuss the contract talks.

The delegates were set to meet again Thursday to discuss strike mobilization plans.

The union cut off contract talks in June after learning that a form of automation had been introduced at the Port of Mobile in Alabama, which they said violated the existing contract. The port had started using an auto gate system that autonomously processes trucks without ILA labor, the union said.

The ILA has long opposed efforts to automate the ports, which they view as a serious threat to their jobs.

Terminal operators and shipping lines are represented by the U.S. Maritime Alliance, or USMX, which is based in Lyndhurst. According to the organization, the contract in question covers approximately 25,000 workers employed in container operations at ports on the U.S. East and Gulf coasts.

In its most recent statement on the contract talks, issued Aug. 30, the USMX said that it “has still been unable to secure a meeting with the ILA to resume negotiations on a new master contract. USMX continues to meet with its members in preparation for the resumption of negotiations, and it remains committed to working with the ILA leadership on a new agreement.”

In August both sides filed a notice with the Federal Mediation and Conciliation Service about their dispute.

“The ILA has gone out on strike before to demand dignity at work and dignity in pay, and the ILA can do the same today if USMX refuses to properly value the ILA members’ work,” Daggett told the union delegates Wednesday.

“The ILA will most definitely hit the streets on Oct. 1 if we don’t get the kind of contract we deserve,” Daggett said in a taped message to union members.

“These greedy companies have made billions in the past few years, especially during COVID,” he said. “We never shut the ports down during COVID. ILA members lost their lives.”

He noted that ILA members in 1977 went on strike for three months.

Strike could stop work at ports in Newark and Elizabeth

A strike could impact all ports on the East and Gulf coasts, from Maine to Houston, and it would cause a complete work stoppage at the Port of Newark and Elizabeth.

The Port Authority of New York and New Jersey acts as the landlord at those ports, leasing out space to the terminal companies.

“While the Port Authority is not at the table for these negotiations, we are closely monitoring developments and remain hopeful that the International Longshoremen’s Association and the United States Maritime Alliance can come to an agreement that benefits all parties involved,” said Steve Burns, a Port Authority spokesperson.

“We are coordinating with partners across the supply chain to prepare for any potential impacts,” Burns said. “For the over 600,000 regional jobs our port supports and the $240 billion in goods moved through here each year, we urge both sides to find common ground and keep the cargo flowing for the good of the national economy.”

Retail industry alarmed at potential strike during peak shipping season

A strike would seriously hamper the retail industry’s ability to get their products into the hands of consumers.

National Retail Federation President and CEO Matthew Shay this week called on the ILA and USMX “to return to the bargaining table to resume negotiations.”

“The threat of a strike during the peak shipping season has many retailers already implementing costly mitigation strategies,” he said.

“At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy,” Shay said. “The administration needs to offer any and all support to get the parties back to the table to negotiate a new contract.”

In June, the federation led a coalition of 158 state and federal trade associations in a letter to President Joe Biden urging the administration to work with the negotiating parties to reach a new agreement.

The USMX is an association of companies that operate cargo ships and the terminals where containers are loaded and unloaded from those ships.

Among them are several that operate New Jersey’s port terminals: APM Terminals North America, Inc., and Maher Terminals, LLC in Elizabeth, Port Liberty Terminals in Jersey City and Ports America in Port Newark.

Shipping line members of the USMX with North Jersey headquarters include the Atlantic Container Line based in Westfield, CMA CGM Group/American President Lines based in East Rutherford, COSCO Shipping Lines Inc. in Secaucus, Evergreen Shipping Agency in Jersey City and Hamburg Sud North America, Inc. in Morristown.

This article originally appeared on NorthJersey.com: Longshoremen strike threat for Oct. 1 could disrupt NJ ports at peak shipping season