Market Matters Blog

Just as renewed contract talks began Nov. 12 between International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX), they quickly ended as automation once again became a sticking point with the union.

ILA says semi-automation or full automation will lead to a loss of jobs for humans. USMX says they are not automating to eliminate jobs but to improve safety and efficiency.

On Oct. 25, 2024, leaders of ILA and USMX in a joint statement said they would resume Master Contract discussions in November 2024, to "discuss all outstanding issues to reach a new agreement. Earlier this month, the two sides extended the Master Contract until Jan. 15, 2025, and reached a tentative agreement on wages that is contingent on bargaining all open issues."

This came after a three-day strike at 36 U.S. ports was suspended as the ILA union members and USMX came to a tentative agreement. On Thursday, Oct. 3, 2024, The ILA on their Facebook page announced, "International Longshoremen's Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have reached a tentative agreement on wages and have agreed to extend the Master Contract until Jan. 15, 2025, to return to the bargaining table to negotiate all other outstanding issues."

On Tuesday, Nov. 12, 2024, those talks fell apart when the ILA reported to members, "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."

USMX on their website Nov. 13, said, "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 ILA said on their website they 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." https://ilaunion.org/…

ILA president Harold Daggett released a statement on the ILA website saying, "I want to extend my heartfelt thanks to our entire membership for your incredible support and unwavering solidarity. Together, we're standing up to USMX and the shipping lines, who are pushing automation and new technology that threaten our jobs and the livelihoods of working people. We believe firmly that machines should not replace hard-working men and women who have dedicated their lives to this industry. Our union is built on the strength of its members, and I am proud to stand with each of you in this fight."

The USMX said it has been clear that they 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." https://www.usmx.com/…

Stay tuned. Remember the tentative agreement included language which gave the ILA the right to strike again if talks broke down.

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

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