Us East Terminal talks break down, increasing strike risk
Despite earlier pledges not to release details of new labor contract negotiations through the media, the International Longshoremen's Association of America (ILA) and the United States Maritime Union (USMX) have recently engaged in a heated debate over the use of semi-automated technology at East and Gulf Coast ports through public statements. The ILA said negotiations with shipping companies and employers had reached a "crossroads" over the use of semi-automated rail gantry cranes (RMGS).
In October 2024, the two sides reached an agreement through a three-day strike to extend the current contract until Jan. 15, 2025, to buy more time to resolve differences over issues such as port automation technology. However, during the last four days of negotiations, the ILA said that USMX raised the issue of new semi-automation in the middle of the negotiations, causing the talks to break down.
"USMX's plan to implement semi-automation in the middle of the negotiations is completely contrary to their commitment at the beginning of the negotiations that they would not discuss full or semi-automation," said Harold Daggett, chairman of the ILA. He warned there could be another strike in less than six weeks if the issue could not be resolved. He further stressed: "Our longshoremen are ready to pay the maximum price for fighting automation. It's a fight for survival."
USMX: Improving port efficiency is urgent
In response, USMX said it was not trying to eliminate jobs, but that it believed Eastern and Gulf Coast ports needed to become more efficient. They point out that because most ports lack expansion land, the only solution to meet freight demand and handle larger volumes is to "optimise existing port areas for higher density cargo flows".
USMX calls the move a "modernization" and "technology investment." They highlight how one port has almost doubled its cargo volume since introducing semi-automatic bridge technology a decade ago. In a statement, USMX said: "Our top priority has always been to use technology to improve efficiency, safety, capacity and productivity. Blocking modern technology, which is already allowed under existing contracts and is already in practice, will only reduce port efficiency, reduce existing cargo capacity, impede cargo throughput growth, and limit union jobs and wage gains."
USMX also said that U.S. ports must strengthen their ability to support complex supply chains and improve their resilience to respond to surges in trade or weather disruptions to ensure that ports play a positive role in the growth of the U.S. economy.
ILA: Technology must not come at the expense of jobs
Dennis Daggett, executive vice president of the ILA, said in a lengthy statement that the ILA is not opposed to progress, innovation or modernization, but cannot accept technology that threatens jobs, national security and the future of workers. He noted that the semi-automatic bridge technology is fully automated for 95 percent of the operation, requiring human involvement only when the container is loaded into the last six feet of the truck chassis. He also raised the cybersecurity risks that automation could bring, suggesting that foreign powers, such as China, could hack through port systems, posing a threat to national security and the economy.
The prospect of talks is uncertain and the risk of a strike has increased
The ILA has frequently used the words "deadlock" and "deadlocked" to describe the current negotiating situation. There are fears that if the talks fail to reach an agreement, a new round of strikes could break out, just a week before the end of the Biden administration. The Biden administration has previously pushed employers to meet the ILA's wage demands, but the incoming Trump administration's position is unclear. Despite the ILA's claims that Trump supports unions, a strike could have a severe shock to the U.S. supply chain and economy just as the new administration takes office.
With the two sides increasingly divided, the future direction of the negotiations is unclear. USMX's insistence on modernization and ILA's defense of jobs both seem to be adding fuel to the fire.
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