White House May Intervene in Longshoremen-USMX Talks, Expert Warns

Logistics Management's Group News Editor, Jeff Berman, recently interviewed Melissa Atkins, a labor and employment lawyer at Obermayer Rebmann Maxwell & Hippel. Atkins shared her perspective on the currently stalled labor negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Exchange (USMX) concerning their labor agreement, set to expire at the end of September, along with related topics.

LM: How do you think this situation might play out now that the talks have been suspended? It has created a fair amount of anxiety on top of an already uncertain situation, given all the moving parts in the ocean container shipping market these days.

Melissa Atkins: I mean they say the conversations have halted, but one can assume—and I can only go based on my experience—that those conversations never end. You're always talking, whether it's just phone calls or e-mail, but counsel is usually still trying to work these types of situations out. And you know when they say that the negotiations have halted, I imagine what they mean is the formal meetings are taking a pause, just because there may be too many high emotions, and they may not be productive. Or you may get there and not hear or like what the other side has to say, and just get up and leave.

LM: In past years, given different situations with port negotiations specifically that the White House has intervened and we've seen Federal Mediation occur in the past. As you just said, the parties have all summer to hammer out an eventual deal. But do you think this could be another situation in which we do see the White House kind intervene in this case?

Atkins: What I think you are going to see is going to be similar to what we saw last year with the United Autoworkers (UAW). Everybody knows that the shipping industry, just like the car industry and the big three, has a tremendous effect on the GDP.  We're moving into back-to-school in September, and we're moving into the holiday season, and the White House, I believe, will absolutely get involved to make sure that they move forward with a contract and everything's not pushed back…and if we're revisiting 2021 when it when it comes to and 2020 when it comes to packaging and shipping and delivery, that is not ideal. The shipping industry is just really getting back on track, and people are getting packages on time, but then if they strike, you're going to be right back in the same situation.

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