There are stalled contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance. The current six-year labor contract covering approximately 85,000 ILA workers is set to expire on Sept. 30, 2024. ILA has accused major shipping companies like Maersk and APM Terminals of violating the current contract by implementing automated systems, such as the “Auto Gate” system, which processes trucks without ILA labor. The union claims this breaches their contract. Talks will remain suspended until the automation issue is resolved. Besides job security concerns, ILA is seeking generous pay increases and robust protections against job losses due to automation in the new contract.
Although a strike is not imminent, shippers are taking the threat seriously, with some diverting cargo to West Coast ports to avoid disruptions. An already stressed supply chain, affected by issues in the Red Sea and Panama Canal, would face additional pressure. If negotiations continue to stall, the Biden administration is expected to intervene, as it did during last year’s West Coast dockworker dispute.
