Ports re-open as union warns on contract talks

Dockworkers have returned to work at ports along the East and Gulf coasts, but their union has cautioned that significant concerns regarding automation still need to be addressed before the current contract expires in early 2025.

Major terminals reopened on Sunday to resume container handling after a three-day strike by 45,000 members of the International Longshoremen’s Association (ILA) halted cargo imports and left dozens of ships anchored outside ports from New England to Texas.

If the strike had lasted a week, it’s estimated that up to 1 million twenty-foot equivalent units of cargo could have been delayed at the ports.

The ILA ended its strike late Thursday after reaching a tentative agreement with port employers represented by the United States Maritime Alliance (USMX) for a 62% pay increase. With the help of Biden administration officials, both parties agreed to extend the current master contract until January 15 and to resume negotiations for a new six-year agreement. Key issues include benefits, container royalties, and the union's demand to prohibit automation technology at 14 container handling facilities across 36 ports.

“While obtaining a significant wage increase is crucial, we must also safeguard our traditional work jurisdiction and ensure that automation does not replace jobs,” President Harold Daggett stated in a message to members posted on the union’s website.

Terminal operators and shipping lines within the USMX have expressed their support for the union’s stance on technology.

However, the ratification of a new contract by the ILA membership is not guaranteed; recently, 33,000 Boeing workers who were on strike in September rejected a tentative agreement with the leading U.S. aerospace company.

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