ILA, USMX negotiations break down

After resuming negotiations this month following a tentative agreement in October between members of the International Longshoremen’s Association (ILA) and the United States Maritime Alliance Ltd. (USMX), the ILA says talks have broken down as of Nov. 13.

The parties had agreed to extend their master contract into early next year and to return to the bargaining table to negotiate outstanding issues, including using automation at the ports. The tentative agreement meant that the affected ports on the East and Gulf coasts resumed operations in early October. 

The ILA says it joined USMX at the table the week of Nov. 11 prepared for four days of "intensive bargaining" to reach a contract.

"For the first day and a half, discussions were productive, and both sides engaged in addressing serious issues," the ILA says. "However, late yesterday, talks broke down when management introduced their intent to implement semiautomation—a direct contradiction to their opening statement where they assured us that neither full nor semiautomation would be on the table. They claimed their focus was on modernization, not automation.”

The ILA says it has always supported modernization when it leads to increased volumes and efficiency as long as “a human being remains at the helm,” adding that automation “replaces jobs and erodes the historical work functions we’ve fought hard to protect.”

The USMX says, “While we had positive progress on a number of issues, we were unable to make significant progress on our discussions that focused on a range of technology issues.

“Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades—making it impossible to evolve to meet the nation’s future supply chain demands. The USMX has been clear that we are not seeking technology that would eliminate jobs,” according to the organization that represents port operators and ocean carriers. “What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong and increases capacity that will financially benefit American businesses and workers alike.”

The ILA has responded by saying that “employers and certain media outlets perpetuate the false narrative that the ILA is stonewalling technological progress. This couldn’t be further from the truth.”

The union notes that at one of the major terminals in the Port of New Jersey, it has increased daily gate moves to nearly 10,000 from 1,500, handling them in approximately the same amount of time. Its ship-to-shore cranes also enable ILA crane operators to handle containers more efficiently than a decade ago. “Additionally, terminal yard container-handling equipment has seen significant advancements, allowing us to maintain some of the most state-of-the-art and efficient terminals in the world,” the ILA says. “Contrast this with automated terminals worldwide, which consistently lag behind in productivity.”

The breakdown in the negotiations could increase the possibility that a second strike will occur at ports on the East and West coasts Jan. 15, 2025, the date the ILA and USMX extended their current contract to when they agreed on a 61.5 percent wage hike spread over six years in early October. However, according to the Sourcing Journal via Yahoo!news, the union hasn’t taken that raise yet as it would require signing a “no-strike clause.”