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The International Longshoremen’s Association (ILA) union, which represents 45,000 workers at major container ports, and the United States Maritime Alliance (USMX) are currently in negotiations as the union’s contract expires September 30. In a report from Reuters, the groups have not yet reached an agreement on “pay, terminal automation, healthcare coverage and retirement benefits.”
Last week, the ILA delegates unanimously agreed to a strike at ports from Maine to Texas effective Oct. 1 if negotiations are not resolved by the deadline.
In the Reuters article, Vincent Clerc, CEO of A.P. Moller-Maersk, says a strike “would have ‘serious ripple effects’ on global supply chains already under pressure from Red Sea diversions.”
Clerc also says USMX has previously been able to come to agreements with the union before the deadline.
The National Retail Federation is urging the groups to come to an agreement to avoid supply chain interruptions ahead of the holiday season.
“This is a critical time as retailers prepare for the all-important holiday season, and we need every port in the country working at full capacity,” says NRF vice president for supply chain and customs policy Jonathan Gold. “Many retailers have brought cargo in early and shifted to alternate ports as a precaution, but it is vital that labor and management at the East Coast and Gulf Coast ports actually sit down at the negotiating table and bargain in good faith for a new contract so we can avoid a disruption of any kind when their contract expires.”
