Talks Remain Stalled as ILA Contract Expiration Approaches
Dockworkers along the US East and Gulf coasts appear fully ready to strike when their current contract expires at the end of the month. The International Longshoreman’s Association (ILA) Wage Scale Delegation wrapped up their Wage Scale Delegation meeting last week with a unanimous vote to strike if they don’t reach an agreement with the United States Maritime Alliance (USMX) on a new contract by September 30.
There is a growing sense the strike may happen as the sides still haven’t met for formal negotiations since June, when a dispute over automation at the Port of Mobile interrupted current talks. For their part, USMX claims they are ready to return to the table at any point to resume contract negotiations.
“USMX remains committed and prepared to resume negotiations with the ILA on a new Master Contract before the current agreement expires and to avoid a strike,” USMX said in a statement. “The ILA continues to strongly signal it has already made the decision to call a strike and we hope the ILA will reopen dialogue and share its current contract demands so we can work together on a new deal, as we have done successfully for nearly 50 years.”
The two sides remain far apart on wage demands. The ILA is reportedly asking for a nearly 80% increase in wages over the course of the new six-year contract, but USMX remains steadfast that their offer of 32% is more than enough.
“Right now we’re at an impasse,” ILA Executive Vice President Dennis Daggett said in a Youtube video posted to the ILA website. “We can’t even get past the economics of the contract. We’re very, very far apart.”
As the Journal of Commerce reports, some shippers have already started testing contingency plans as the risk of the strike grows larger. A strike would undoubtedly cause delays and congestion as shippers would be forced to find new routes and ports for their shipments.
With no further talks currently scheduled and the days slipping away before the end of the current contract, the industry must collectively wait to see if the two sides can come to an agreement.
Historically we could expect the Taft-Hartley Act to be invoked, but as we approach a critical election it will be interesting to see how that may impact voters.
Scarbrough will continue to monitor the situation as it unfolds and update as necessary. If you have questions about how this may impact you or would like to discuss alternative options in the event of a strike, please contact your Scarbrough representative.
