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Dockworker Contract Talks Resume

Talks to establish a new contract for East Coast and Gulf Coast dockworkers have resumed after breaking off in December following a contentious opening round of negotiations. Promo companies should be rooting for the new five-year contract to be established amicably by or before the September deadline, as a protracted, combative negotiation could lead to dockside delays or work stoppages at ports – problems that could prevent imported products from arriving ashore on time.

The International Longshoreman’s Association (ILA), the union representing workers, and the United States Maritime Alliance (USMX), which represents terminal operators and container shipping lines at ports from Maine to Texas, have picked up their negotiations amidst pressure from businesses that rely on the ports as part of their supply chains. Shippers and industry groups, including those representing retail and food/beverage interests, penned a letter encouraging the union and USMX to reengage in negotiations, The Wall Street Journal reported. The letter also stated that rerouting shipments to West Coast ports could be an option as a contingency plan.

Late last week, the ILA and USMX released a statement announcing that talks were back on. “The two sides will continue to negotiate Master Contract issues and will encourage local port areas to concurrently work out terms for local agreements,” the statement said in part.

In December, union representatives broke off negotiations 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. ILA President Harold Daggett has vowed to prevent container terminals from automating to the degree seen in Europe.

While automation will be a central focus of the talks, ILA spokesman Jim McNamara told WSJ that enough progress had been made on defining fully automated equipment and semi-automated terminals for contract discussions to resume.

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 2017 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.