Negotiations for a new labor contract covering workers at 36 East and Gulf Coast ports are set to resume next week, with the potential for a second strike looming over the discussions.
Resumption of Negotiations
Negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) are set to resume next week. The talks, which will take place in northern New Jersey, will not involve mediators. The USMX and ILA had previously declared a media blackout during negotiations.
The Impact of a Potential Second Strike
The Biden administration had previously intervened in October to end a three-day strike by the ILA. The strike had threatened a logjam of billions of dollars of imports, ranging from pharmaceuticals to auto parts. The current contract was extended until January 15th, with a 62% pay hike agreed for the 45,000 union workers over the six years of a new pact. However, automation remains a contentious issue, with the union opposing new port technology that could replace longshore jobs.
The current contract could be extended again if a new agreement is not reached by the January 15th deadline. Importers have been pulling shipments forward in anticipation of a possible second strike. It remains unclear whether ILA leadership would call for another work stoppage, and whether the incoming Trump administration would invoke the Taft-Hartley Act to order striking longshore employees back to work.
As the deadline approaches, the question remains: Will a new pact be agreed upon, or will the threat of a second strike lead to further disruptions in the supply chain?
