Last minute twist: the longshoremen’s union and the Maritime Alliance have resumed their negotiations, but no indication has emerged concerning the planned walkout of several tens of thousands of longshoremen starting Tuesday in several major American ports.
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“Over the past 24 hours, the USMX and the ILA have exchanged counter-offers regarding salaries,” the United States Maritime Alliance (USMX) said in a statement early in the evening, specifying that it had “improved” its proposal and requested an extension of the social agreement to continue negotiating.
But it does not indicate what happens, in these circumstances, to the union’s intention to strike once the six-year labor agreement expires at 11:59 p.m. Monday in ports on the East Coast and the Gulf from Mexico.
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Asked by AFP, the Alliance and the union did not react immediately.
According to a source close to the discussions, the proposal detailed by the Alliance corresponds to that rejected Monday morning by the union and the latter did not respond immediately regarding the extension.
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But the fact that the negotiations, which began in May, are resuming can be considered as progress after several weeks of silence. They stumble on wages and automation.
The USMX represents employers in 36 ports scattered along the coasts from Maine to Texas, on the Gulf of Mexico, to Florida.
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Opposite, the union has 85,000 members in the United States (ports, rivers, lakes).
But the expiring social contract only concerns 25,000 members, working in the container and rolling vehicle loading terminals of fourteen major ports (Boston, New York, Philadelphia, Baltimore, Savannah, Miami, Tampa, Houston, etc.).
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The union warned on Sunday that all its members would picket from 12:01 a.m. Tuesday, “joined in solidarity by longshoremen and maritime workers around the world.”
The transport of hydrocarbons and agricultural products, or even cruises, should be affected only very slightly, if at all.
“Unfair pay”
“ILA members deserve to be compensated for the important work they do to keep American commerce flowing and growing,” the union said Monday morning, denouncing the “billions of dollars in profits” collected by ports and maritime carriers, including during the Covid-19 pandemic.
“Meanwhile, dedicated ILA members continue to be crippled by inflation due to unfair pay,” he continued.
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The Alliance criticized the union for refusing any discussion for weeks, thereby preventing an agreement on the new six-year agreement.
And Joe Biden, who presents himself as the “most union-friendly president,” indicated on Sunday that he had no intention of intervening. Five weeks before the presidential election.
However, he can activate the Taft-Hartley law – used numerous times for ILA strikes before 1977 -, allowing an 80-day moratorium to be imposed.
The Federal Mediation Service (FMCS) told AFP on Monday that it was in “regular contact” with the parties and was “ready to help” if both camps agree. The USMX agrees, the ILA does not.
Importers and exporters have taken the lead by shipping their products in advance. Others have opted for unloading on the West Coast, which is more costly and time consuming from Europe.
“No shortage of essential products”
But West Coast ports, covered by a separate labor agreement reached in 2023 that prohibits them from striking, could disrupt operations in solidarity. And they have little available capacity.
Canadian ports could not absorb an overflow from the United States. Especially since they are also experiencing social movements, like Vancouver last week and Montreal blocked since Monday.
Oxford Economics estimates that each week of strike action would reduce US GDP by $4.5 billion to $7.5 billion.
According to the Anderson Economic Group (AEG), the first week of the walkout is expected to cost $2.1 billion, including $1.5 billion in lost goods (such as perishable goods).
“We do not anticipate any shortage of essential products in the immediate future,” said Kathy Hochul, Governor of New York State, at a press conference on Monday.
Automakers are expected to take a hit from the walkout, with the ports of Baltimore and Georgia serving as an entry point for parts and an exit point for vehicles.
Ford is monitoring the situation “closely”. The German BMW group, which manufactures several SUV models exclusively in South Carolina, does not anticipate any problems this week.
Logistics group DHL, which has noted “strong demand” for its air freight services, has activated “several contingency plans” for its own shipments, including the use of alternative ports and means of transport.
