Approaching Negotiation Deadline Imperils Port Operations

Apparel, footwear and fiber industry groups and manufacturers of numerous other imported products are sounding a warning that a labor dispute could be a major disruption to U.S. port operations next month.

About 45,000 dockworkers have an Oct. 1 strike deadline, a threat to shut down ports that handle about half the nation’s cargo from ships. The ports, along the U.S. East and Gulf Coasts, are epicenters of a union effort to preserve jobs likely to be targeted for elimination with greater use of automation.

According to the Associated Press, U.S. ports trail their counterparts in Asia and Europe in the use of automation. Analysts note that most U.S. ports take longer to unload container ships than do those in Asia and Europe and suggest that without more automation, they could become even less competitive.

Opposing automation of cranes, gates and container movements at 36 U.S. ports, the International Longshoremen’s Union (ILU) halted master contract negotiations on June 10 because of an automation issue at the Port of Mobile. ILU also seeks significantly higher wages; reportedly a 77% increase over six years. Negotiations with the U.S. Maritime Alliance, which represents the ports, haven’t resumed.

When negotiations broke down, led by the National Retail Federation, a coalition of retailers, manufacturers, distributors, wholesalers and other supply chain stakeholders urged the Biden administration to step into the dispute. The Taft-Hartley Act enables the president to seek a court order for an 80-day cooling-off period if a strike were deemed to endanger national health or safety. This would suspend the strike.

Read the NRF’s latest blog post (Sept. 17) on the issue here and Logistics Management magazine’s perspective here.