The International Longshoremen's Association (ILA), representing union workers on the East Coast and Gulf Coast, has halted negotiations with the United States Maritime Alliance (USMX) due to the implementation of automated technology at ports. The suspension comes amid ongoing discussions for a new labor contract. The ILA discovered the use of an "auto gate" system by APM Terminals and its parent company, Maersk, at the Port of Mobile, Alabama, and suspects its application at other ports. This system processes trucks without union labor, which the ILA argues breaches their existing Master Contract with USMX.
ILA president Harold J. Daggett emphasized the union's refusal to negotiate under these conditions, citing the automation efforts as attempts to eliminate union jobs. Conversely, a Maersk spokesperson asserted APM Terminals' compliance with the ILA/USMX Master Contract and expressed disappointment over the ILA's publicizing of negotiation details. The ILA, North America's largest longshoreman union with 85,000 members, has put off further discussions until the automation issue is addressed. This decision arises amidst the negotiation of local agreements under the coast-wide Master Contract, set to expire on September 30.
Previous labor disputes, such as the 2022-2023 West Coast International Longshore and Warehouse Union contract negotiations, have underscored the significant impact of labor actions on trade, with billions in trade affected and prolonged recovery times for cargo backlogs. The current standoff between the ILA and USMX adds another layer of complexity to the global shipping landscape.
Source: cnbc.com