Dockworkers Threaten Strike Over Issue of Automation

The threat of a strike by dockworkers along the US East and Gulf Coasts has intensified as the International Longshoremen’s Association (ILA) halted negotiations with the United States Maritime Alliance (USMX). The ILA took this step after discovering that APM Terminals (APMT) and Maersk were using automated gate systems to process trucks without union labor. These systems, which autonomously handle trucks, were first identified at the Port of Mobile, Alabama, and are reportedly being used at other ports.

“There’s no point trying to negotiate a new agreement when one of its major companies continues to violate our current agreement with the aim of eliminating ILA jobs through automation,” said ILA President Harold J. Daggett.

While the issue of automation is a recent one, the threat of a longshoreman strike dates back to last fall.

The ILA, representing 85,000 union workers, has stated that negotiations will not resume until the issue of automation is resolved. The master contract between the ILA and USMX, covering terminal operators and ocean carriers, is set to expire on September 30. Previously, the ILA had set a deadline of May 17 for local contracts to be settled. The decision to cease talks has raised concerns about potential strikes, especially as cargo orders begin to shift back to West Coast ports ahead of the peak shipping season.

A Maersk spokesperson disputed the ILA’s claims, asserting that APMT is “in full compliance with the ILA/USMX Master Contract” and expressed disappointment over the ILA’s public disclosure of selective negotiation details. The United States Maritime Alliance, which represents ocean freight companies and port terminal operators on the East and Gulf Coasts, declined to comment.

The breakdown in negotiations follows a pattern seen on the West Coast, where labor disputes over automation and contract terms led to a prolonged negotiation process that was only resolved last June with a six-year contract for West Coast dockworkers. The current standoff continues this trend, with automation being a central sticking point in both sets of negotiations.

Daggett has been vocal about securing a favorable economic deal for union members and opposing port automation. The National Retail Federation (NRF) has urged both parties to negotiate to avoid significant disruptions. Jonathan Gold, vice president for supply chain at NRF, emphasized, “It is crucial to avoid significant disruptions, including labor strikes, to minimize negative economic impacts.”

The situation remains tense as the ILA and USMX navigate this critical period. The outcome of these negotiations will have significant implications for the shipping and logistics industry, as the threat of strikes looms large over some of the nation’s busiest ports.