Posted on September 5, 2024
Formal talks have reached an impasse as the union and the United States Maritime Alliance (USMX) employer group wrangle over pay, terminal automation, healthcare coverage and retirement benefits.
A source familiar with the negotiations said the ILA has asked for a 77% pay bump over the life of the new contract. Three experts told Reuters the final increase would likely improve on the 32% rise the West Coast longshore union negotiated last year.
ILA International President Harold Daggett has warned that workers will strike if a new labor agreement is not reached before the current six-year contract expires on Sept. 30.
“The ILA most definitely will hit the streets on October 1 if we don’t get the kind of contract we deserve,” Daggett, the union’s chief negotiator, said in a video message posted on Wednesday.
Any work slowdown or stoppage would affect key ports including New York/New Jersey, Houston and Charleston, South Carolina, backing up goods ahead of the holiday season and U.S. presidential elections.
Such disruptions would have “serious ripple effects” on global supply chains already under pressure from Red Sea diversions, said Vincent Clerc, CEO of A.P. Moller-Maersk (MAERSKb.CO), opens new tab, last week at an event in Los Angeles.
Maersk is a USMX member company. When asked about the status of the talks, Clerc said negotiators previously had been able to “take it from the brink” and reach an agreement.
Shippers that depend on affected ports are not taking chances, and many have brought in goods early to mitigate risk.
