The dockworkers union has issued a warning of potential strikes along the US East and Gulf Coasts in the coming year. This announcement comes as a result of ongoing contract negotiations between the union and employers. While no specific dates have been set for the potential strikes, the union has stated that they will take place if an agreement cannot be reached. The impact of such strikes could be significant, causing disruptions to shipping and supply chains. The union has emphasized that their goal is to secure fair wages and benefits for their members. Employers have stated that they are committed to reaching a mutually beneficial agreement. Both sides are expected to continue negotiations in the coming weeks in an effort to avoid any potential disruptions to the industry.
The International Longshoremen's Association (ILA), which represents over 70,000 dockworkers on the east coast of the US and Canada, the Gulf Coast, the Great Lakes, Puerto Rico and inland waterways, has issued a warning of a possible strike next year if the union doesn't reach a deal with employers. The union's president, Harold Daggett, has pledged not to extend the current six-year pact with the United States Maritime Alliance (USMX) beyond its expiration date at the end of September.
Concerns and Demands of ILA
The ILA has been fighting against automation at ports, which could potentially lead to job losses. As a result, the union expects USMX, representing an alliance of employers, port associations and container carriers serving the US East and Gulf coasts, to "deliver a landmark compensation package". Daggett has been vocal about the issue, stating that "It's time for foreign companies like Maersk and MSC to realise that you need us as much as we need you". He has also warned that if it comes down to it, there will be no extensions and the union will be out in the street.
Potential Implications of a Strike
Commenting on the potential strike next year, Lars Jensen, who heads up container advisory Vespucci Maritime, said: "The threat of a strike places pressure on USMX as the mere threat of a strike could cause shippers to pre-emptively move cargo to the West Coast. The threat is likely, not idle at all, but saber-rattling at this point is to be expected irrespectively."
Overview of Current Deal and Recent Developments
The current deal between ILA and USMX was struck in September 2018, with landmark protections for ILA members against automation job losses, maintaining a premier National Health Care Plan (MILA) and salary increases. Meanwhile, in June this year, the International Longshore and Warehouse Union (ILWU), representing 22,000 dockworkers at nearly 30 US West Coast ports and the Pacific Maritime Association (PMA) employer group reached a tentative deal on a new six-year contract, ending 13 months of talks and easing supply chain worries. The deal included a 32% pay increase throughout the contract until July 2028 as well as a one-time bonus for working through the early days of the Covid pandemic.
As negotiations continue between ILA and USMX, it remains to be seen whether a strike will occur. However, the threat of a strike places pressure on both parties to come to an agreement that benefits all involved.
(This article is sourced from Splash247.com and curated by Thetransporteronline24)
