The U.S.’s International Longshoremen’s Association (ILA), representing dockworkers along the East Coast, the Gulf Coast, and as far west as the Great Lakes, is signaling the possibility of a coast-wide strike in October 2024. Despite having 10 months left on the master contract for about 45,000 of its 70,000 members, the ILA leadership has already begun preparing its members for potential job action. This proactive approach has major implications for the logistics and shipping industries, which must brace for potential disruptions.
The Potential Strike and Its Implications
During a recent educational conference for South Atlantic and Gulf Coast members, ILA leadership underscored the importance of preparing for a possible strike. ILA President Harold Daggett is determined to hold firm on the union’s stance against automation and to demand substantial wage increases. Daggett’s keynote address at a July conference reinforced this message, highlighting the ILA’s resistance to job-replacing automation and asserting the union’s critical role in the negotiations with the United States Maritime Alliance (USMX), which represents the employers.
“We will not take a back seat to anyone,” Daggett declared. “It’s time for foreign companies like Maersk and MSC to realize that you need us as much as we need you.”
The Central Issues: Automation and Compensation
The ILA’s primary concerns are automation and fair compensation. Daggett has clarified that the ILA will oppose any automation efforts that threaten jobs. He has criticized the West Coast counterparts for their leniency on automation and aims to halt what he describes as “job-killing automation” at ports globally. Daggett has even suggested the possibility of leading a global alliance to strike against shipping lines pushing automation.
“If foreign-owned companies like Maersk and MSC try to replace our jobs with automation, they are going to get a painful reminder that longshore workers brought these companies to where they are today,” he warned.
On the compensation front, the ILA targets a generous contract package similar to the over 30 percent increase secured by the West Coast International Longshore Workers Union. The ILA’s Great Lakes District has already achieved a 40 percent increase in wages and benefits for its new six-year contract, setting a high bar for the upcoming negotiations.
Potential Impact on the Logistics Industry
The possibility of a strike has raised significant concerns within the shipping and logistics communities. Past job actions on the West Coast and by Canadian unions may have impacted trade, causing delays and raised costs. The potential for similar disruptions on the East and Gulf coasts in 2024 is causing apprehension among industry stakeholders.
The 2024 negotiations come at a time when container carriers are already dealing with financial pressures from declining freight rates and volumes. A strike could exacerbate these issues, leading to further logistical challenges and increased costs for shippers.
Preparing for the Uncertain Future
The industry is in a wait-and-watch mode as the ILA and USMX prepare for the crucial negotiations ahead. Businesses involved in logistics and shipping must start preparing for potential disruptions by developing contingency plans. This could include diversifying supply chains, securing alternative routes, and increasing communication with stakeholders to mitigate the impact of a potential strike.
Contact Everglory Logistics to navigate these complexities and ensure your supply chain remains resilient. Our experienced team can provide expert guidance and strategic solutions to help you prepare for and manage potential disruptions in the logistics industry.
Contact us today to safeguard your supply chain and stay ahead of the curve.
