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Here We go Again – ILA Stops Contract Talks – ILA Strike Watch 2025

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15 November 2024

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The International Longshoremen’s Association (ILA) broke off contract negotiations with the United States Maritime Alliance (USMX), increasing the odds of another dockworker strike, which would shut down U.S. East and Gulf Coast ports and disrupt supply chains in January.

Shippers worry they’re watching a replay of what happened back in June, when the ILA cancelled contract negotiations and never returned to the table before executing a strike on October 1st that shut down East and Gulf Coast ports for three days.

There are, however, four significant differences between the ILA’s halting of talks now and its cancellation of negotiations then:

#1 – 2 Days of Actual Negotiations

ILA Dockworkers Prepare for Strike as Watch Counts Down

Let’s start with the positive difference. There were a couple days of productive negotiations this time before the union ended talks. The USMX described those two days’ talks with the words “positive progress” and the ILA called that time “productive,” saying “both sides engaged in addressing serious issues.” The ILA cancelled June’s talks before they even began.

#2 – Automation Instead of Wages

Previously, the ILA cancelled negotiations over the issue of wage increases. This time, the issue is automation.

Automation has long been a contentious issue between the union and employers. And to be fair, it was already in the background of June’s cancellation. With its wage increase offers, the USMX was including that it would not change the automation language from the previous contract, keeping the the negotiated arrangement between the USMX and ILA around automation the same. The ILA wanted to do away with the previously negotiated terms and not allow any automation of any kind at the ports.

Despite some public comments from both sides about automation between ILA’s cancellation of talks in June and the union’s strike in October, wages remained the big issue at the forefront. While the tentative agreement on wages may be revisited, the big issue at the forefront now is automation. Though USMX often uses terms that encompass more than just automation like “technology issues” and “modernization.”

The USMX says it is “not seeking technology that would eliminate jobs.” However, the ILA sees all automation as an existential threat and claims employers are being dishonest in what the USMX says about modernization and automation. The union says, “… talks broke down when management introduced their intent to implement semi-automation—a direct contradiction to their opening statement where they assured us that neither full nor semi-automation would be on the table. They claimed their focus was on modernization, not automation.”

#3 – Less Time Before Deadline

Last time the ILA cancelled negotiations, there were more than three and a half months before the deadline to get a deal done to prevent a strike. That wasn’t enough time.

This time, there are two months and two days from the union halting negotiations until the deadline for a new potential strike. Good thing some progress was made before talks broke down. Of course, if the union never returns to the table again before the deadline, like what happened last time, it won’t matter how much progress has already been made in talks.

#4 – No Pressing Election

When the ILA strike hit in October, the presidential election was only a month away. A strike shutting down supply chains was bad news for the Biden/Harris Administration. It was stuck between a rock and a hard place, not wanting to hurt Harris’s chances of winning the White House by allowing the strike to go on and not wanting to hurt her presidential chances by forcing dockworkers back to the terminals and ticking off major unions, which are typically a cog in the Democrat campaign machine.

Thus, the administration publicly used union rhetoric to talk about the situation and put pressure on the parties behind the scenes to end the strike quickly.

Now, Harris has lost the election and the political urgency for the Biden/Harris Administration to end a strike, should one start January 15th, won’t exist. Would the administration just leave the problem for President Trump, who won’t get inaugurated until five days after the strike starts? Would Trump, in his current president elect position, act to try to resolve the situation before he even gets elected?

It’s a murkier situation that could potentially lead to a longer strike than the first one.

Both Parties’ Statements About Contract Talks Breaking Down

Both the USMX and ILA made public statements about the halting of contract negotiations. I’m including the text of both in full below.

USMX’s statement is shorter, was published on its website, and seems to be aimed at updating the public. Through it, the employers quickly share their perspective on the situation, which is the ILA wants to move backward on technology that has long been present at the ports and make it impossible for the ports to adapt to America’s future supply chain needs. The USMX also insists it is not seeking technology that would eliminate jobs. Rather, it seeks modernization that improves worker safety, increases efficiency “in a way that protects and grows jobs,” and will financially benefit both U.S. businesses and workers.

ILA’s significantly longer statement was posted on Facebook and was addressed to its membership. However, it’s likely also aimed at persuading the general public to be on the side of the union. ILA’s rhetoric, as is typically the case, is more militant and accusatory than that of their employers. ILA claims the USMX introduced intent to implement semi-automation after assuring the union that neither full or semi-automation would be on the table. That is when, according to the union, negotiations broke down.

The ILA claims it supports modernization but not automation. It also claims unnamed studies within the industry found “no machine or algorithm can outperform the productivity of a skilled human workforce.” The union says it achieved an increase at a terminal at the Port of New Jersey of 10,000 daily gate moves from 1,500, though the timeline and details around this increase are unclear. And the union claims automated terminals around the world “consistently lag behind in productivity.”

The union accuses the USMX of deceit and an ultimate goal of eliminating workers with full automation. “Their endgame is clear: establish semi-automation now and pave the way for full automation later,” ILA says. What’s also clear is that the ILA doesn’t want their members and others reading their statement to trust the employers at the ports: “Trust was a theme management introduced at the outset, promising partnership and collaboration. Yet, once again, their actions speak louder than their hollow words,” the union states.

Here are the full statements…

USMX Release About Negotiations Breakdown (Full Text)

UPDATE ON STATUS OF USMX-ILA NEGOTIATIONS

LYNDHURST, NJ (NOVEMBER 13, 2024) – FOR IMMEDIATE RELEASE

“Over the last two days, USMX met with the ILA to bargain and resolve all remaining outstanding issues needed to reach agreement on a new Master Contract.

[“]While we had positive progress on a number of issues, we were unable to make significant progress on our discussions that focused on a range of technology issues. Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades – making it impossible to evolve to meet the nation’s future supply chain demands.

[“]The USMX has been clear that we are not seeking technology that would eliminate jobs. What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses and workers alike.

[“]We look forward to resuming negotiations with the ILA.”

ILA Facebook Statement About Breakdown of Negotiations (Full Text)

Message to ILA Members Regarding the Breakdown of Negotiations with USMX

Brothers and Sisters,

NORTH BERGEN, NJ (November 13, 2024) The ILA and USMX came to the table this week, prepared for four days of intensive bargaining to bring us closer to securing a fair contract. For the first day and a half, discussions were productive, and both sides engaged in addressing serious issues. However, late yesterday, talks broke down when management introduced their intent to implement semi-automation—a direct contradiction to their opening statement where they assured us that neither full nor semi-automation would be on the table. They claimed their focus was on modernization, not automation.

The ILA has always supported modernization when it leads to increased volumes and efficiency. For over 13 years, our position has been clear: we embrace technologies that improve safety and efficiency, but only when a human being remains at the helm. Automation, whether full or semi, replaces jobs and erodes the historical work functions we’ve fought hard to protect.

Studies within our industry confirm what we’ve long known—no machine or algorithm can outperform the productivity of a skilled human workforce. Despite this, employers and certain media outlets perpetuate the false narrative that the ILA is stonewalling technological progress. This couldn’t be further from the truth.

Look at our achievements: in one of the major terminals in the Port of New Jersey, we’ve increased daily gate moves to nearly 10,000—a dramatic improvement from the 1,500 moves that once marked a busy day. What’s more, the ILA is processing these 10,000 moves in approximately the same amount of time it used to take for 1,500. This leap in productivity is not just limited to the gates. Our advanced ship-to-shore cranes enable our crane operators to handle containers far more efficiently than they could a decade ago. Additionally, terminal yard container-handling equipment has seen significant advancements, allowing us to maintain some of the most state-of-the-art and efficient terminals in the world. Contrast this with automated terminals worldwide, which consistently lag behind in productivity. Automation is not the panacea it’s often portrayed to be.

It’s disheartening that after making strides in our talks, management resorted to tactics designed to mislead and divide. They’ll likely claim they’re offering to meet our manning proposals as a compromise, but we see through this ploy. Their endgame is clear: establish semi-automation now and pave the way for full automation later. We’ve seen this bait-and-switch strategy in other parts of the world and in other industries, and we will not let it happen on the East and Gulf Coasts.

Now more than ever, solidarity and unity are crucial. Some may question our decision to halt the strike after securing a 62% wage increase over six years. Let’s be clear: strikes are a tool of last resort. They are a hardship for our members and their families, but when backed into a corner, we will not hesitate to wield that weapon. This strike demonstrated our resolve, and while wages were a major hurdle, we believed—and still believe—that further progress could be made at the bargaining table while our members continue their hard work.

We remain committed to securing a fair, equitable contract that ensures long-term stability for our ports and our nation’s economy. Our employers must understand that we are united, shoulder to shoulder, in this fight for the betterment of our hardworking members and their families.

We live in an era where every word and agreement must be meticulously crafted. Trust was a theme management introduced at the outset, promising partnership and collaboration. Yet, once again, their actions speak louder than their hollow words. Automation by any other name is still automation, and the ILA will not be fooled.

Stay strong, united, and resolute. Together, we will show the world that the ILA stands as one, ready to fight for a better way of life for every member and every family who depends on this great union.