The union representing workers at 36 ports along the U.S. East and Gulf coasts has reportedly resumed talks with employers as the deadline for a potential strike approaches in just one week.
According to Bloomberg, representatives of the dockworkers’ union and their employer group, the U.S. Maritime Alliance (USMX), gathered in New Jersey today to negotiate a new labor contract.
If no agreement is reached by the January 15 deadline, a strike by the 47,000 dockworkers could shut down all 36 ports on the East and Gulf coasts.
Back in early October, the International Longshoremen’s Association (ILA) reached a tentative agreement with ocean carriers and terminal operators, securing a 62% wage increase over six years. That deal ended a three-day strike. However, the issue of automation at ports, which the union argues threatens jobs, remained unresolved.
The two parties attempted negotiations again in November, but talks broke down over USMX’s proposal to use semi-automated, rail-mounted cranes at port terminals—a move opposed by the union.
On Sunday, USMX representatives met with ILA leaders to draft language addressing automation ahead of this week’s formal negotiations. The proposed plan would allow the union to create human jobs to complement new technology introduced at ILA-operated ports.
Meanwhile, the Shippers Coalition has urged both sides to avoid a work stoppage, releasing a statement emphasizing the need to resolve the dispute without disrupting port operations.
“Action must be taken immediately to prevent long-term consequences for U.S. retailers, consumers, and the economy at large,” says Alexis Oberg, Deputy Executive Director of the Shippers Coalition. “If a fair negotiated agreement cannot be reached by January 15, we would urge both parties to extend the contract extension and continue to negotiate. Further, we urge both President Biden and President-elect Trump and their teams to intervene in the negotiations and use all tools in their toolbox to prevent a strike and to ease supply chain disruptions should a strike occur.”
The Coalition, made up of over 80 of the country’s top manufacturers, agribusinesses, and trade associations, has joined the call to prevent a strike. On Monday, the Retail Industry Leaders Association released a statement urging both parties to reach an agreement, stating in part:
“After just wrapping a successful holiday shopping season, retailers are starting the new year excited for opportunities to continue delivering for consumers. Similarly, we know Americans are entering 2025 eager for more progress on inflation and continued economic growth.
“However, a looming strike along East and Gulf Coast ports injects a troublesome dose of uncertainty and disruption into retail supply chains, which will ultimately put U.S. economic goals in jeopardy. We’re glad to see contract negotiations resuming this week, but retailers remain cautious about the potential for a labor strike impacting key ports.”
“Too much is at stake, at home and abroad, to lead off the year on the wrong foot with a major labor strike. We urge both parties to remain at the negotiating table until a deal is reached, and help our economy start the new year well-positioned for success.”
