- The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) will resume contract talks on Jan. 7, with automation at port terminals being the primary unresolved issue.
- A six-year wage hike agreement (62%) was reached in October 2024 to end a prior strike, but automation concerns remain a sticking point.
- If no agreement is reached by Jan. 15, another coast-wide strike could disrupt billions in trade, exacerbate inflation, and destabilize supply chains.
Negotiations between U.S. East and Gulf Coast dockworkers and their employers will restart in early January 2025, as the parties aim to resolve disagreements over port terminal automation and avert another major strike, reports Reuters.
Background on Contract Talks
The ILA, representing over 45,000 dockworkers, and USMX, the employer group, are at odds over implementing automation technology at port terminals.
While a temporary agreement reached in October 2024 provided dockworkers with a 62% wage increase over six years, automation issues were left unresolved.
Timeline and Stakes
Negotiations will resume on Jan. 7, but the pressure is mounting to reach a deal before the Jan. 15 deadline.
Failure to do so could result in a coast-wide strike, potentially halting billions of dollars in trade, straining supply chains, and increasing inflationary pressures in the U.S. economy.
Employer’s Stance on Automation
USMX argues that the proposed automation measures do not threaten longshore employment.
They are essential for maintaining the competitiveness of U.S. ports in a global market.
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Source: Reuters
