See it and Sell it First at ASI Show Orlando – January 4-6, 2025.   Register Now.

News

Contentious Start to East Coast Dockworker Contract Negotiations

Talks to establish a new contract for East Coast and Gulf Coast dockworkers started contentiously last week when union leaders walked out on the labor discussions. The talks are relevant for promo companies that import through East Coast and Gulf Coast ports. A drawn out, combative negotiation could lead to dockside delays or work stoppages that prevent imported product from reaching stateside customers on time.

On December fifth and sixth in Hollywood, FL, the International Longshoreman’s Association and United States Maritime Alliance (USMX), which represents terminal operators and container shipping lines at ports from Maine to Texas, met to begin talks of extending a dockworkers’ contract for another five years. The current contract expires in about 10 months.

Nonetheless, representatives of the ILA broke off the discussions on the second day following disagreements over how to define a fully automated port terminal. Unions fear that more automation will lead to greater job losses for their members. Union President Harold Daggett has vowed to prevent container terminals from automating to the degree seen in Europe. A union spokesman told The Wall Street Journal that the ILA couldn’t get assurances from USMX that any unmanned equipment would be considered automated – something the union wants established before continuing with talks.

As of now, there is no timeline for when discussions will resume. USMX issued a statement saying the negotiations could begin again “at some point in the future.”

Promo pros will hope the talks begin – and are settled – sooner than later. Already, earlier this year, labor unrest at the Port of Charleston in South Carolina reportedly caused truck traffic to logjam at a terminal. Additionally, there were calls for a one-day shutdown of ports from Maine to Texas – a stoppage aimed at allowing union members to rally in Washington, D.C., on the issues of job loss to automation and the use of nonunion labor. The shutdown did not occur.

Several years ago, a contract dispute between West Coast dockworkers and shipping industry employers led to delays that resulted in cargo containers getting backlogged – a slowdown in delivery that impacted some promotional product suppliers whose sea-shipped products were prevented from arriving on time. Fears of a repeat on the West Coast were allayed in August when the International Longshore and Warehouse Union, which represents dockworkers at 29 West Coast ports, announced that its members voted in favor of extending their contract with the Pacific Maritime Association, which represents shipping employers. The new West Coast agreement expires July 1, 2022.