On Tuesday, a coalition of U.S. shippers penned a letter formally compelling the White House to intervene in stalling negotiations for a new longshore contract that will cover 45,000 unionized dockworkers across U.S. East and Gulf coast ports.

The International Longshoremen’s Association (ILA) has vowed a coastwide strike if an agreement encompassing their demands is not met by Oct. 1, the day following the expiration of the existing master contract.

On the other end of the bargaining table is the United States Maritime Alliance (USMX), representing maritime employers, including ocean carriers and terminal operators. Released promptly after, USMX printed its support of the letter and stated it was “in strong agreement with the 177 trade associations who are calling for the immediate resumption of negotiations”. The shipper collation was diverse: the signees included prominent retailer groups, bulk industries, transportation associations, and logistics brokers.

Since June, ILA and USMX have not formally met for talks towards a new contract, a decision of the union’s accord.

Over the course of the summer and into the fall, the union has tightened its stance as if to prepare their rank-and-file to picket as soon as calendar flips to October. Earlier this month, ILA leaders held internal meetings where, according to them, details of coordinating a strike were discussed, a sober reminder now two weeks out that the hellish supply chain disruption could in fact materialize.

“A sleeping giant is ready to roar on Tuesday, Oct. 1, 2024, if a new Master Contract Agreement is not in place,” said ILA President Harold J. Daggett in a Tuesday press release.

ILA says it removed itself from the talks earlier this summer due to accusations of USMX engaging in an “ugly propaganda campaign designed to paint ILA longshore workers as ‘greedy’. The union is likely referencing the trickle of information that has been shared by maritime employers to the media throughout the past few months.

In one of the leaks, initially reported by the Wall Street Journal, a source close to the talks claimed ILA is seeking a 77 percent wage increase over the next six years (the lifespan of a master contract). For comparison, West Coast dockworkers achieved a 32 percent wage increase in their respective longshore contract ratified in July 2023.

The union went on to cite from a previous letter it wrote to members: “USMX claims to offer industry-leading wages, however their interpretation [of that] is polar opposite to ours.”
Neither ILA nor USMX have made the exact details of their proposals public, but in a letter to its members reshared in Tuesday’s press release, the union wrote: “USMX claims to offer industry-leading wages, however their interpretation [of that] is polar opposite to ours.”

Shipper coalition letter demands White House intervention

The shipper coalition’s letter attempts to draw an appeal to the Biden administration’s focus on supply chain resiliency, a focal point forced into view during the pandemic-era shipping crisis. They noted the actions the White House took then and used it as a springboard to address the present: use the powers of the executive branch to avert supply chain calamity.
The coalition referenced the administration’s intervening in other contentious labor negotiations: UPS and Teamsters; Class I railroads and several union chapters; and, as previously mentioned, last year’s West Coast impasse between unionized dockworkers and maritime employers.

They called on the Biden administration to “engage with the parties to quickly to negotiate a new deal or agree to continue negotiations while keeping the ports open and cargo flowing.”

Where do things stand at the moment?

On Tuesday, the same day the coalition dated the letter, an administration official informed that President Biden does not intend invoke a federal law to prevent a strike by ILA.

The Taft-Harley Act endows the executive office the authority to quell labor disputes that threaten national security or safety by imposing an 80-day cooling-off period—essentially, a back-to-order that would force dockworkers back on the job while talks would resume.

The administration official told Reuters, “We’ve never invoked Taft-Harley to break a strike and are not considering doing so now. We encourage all parties to remain at the bargaining table and negotiate in good faith.”

The part—“all parties to remain at the bargaining table”—has odd wording as if it implies the administration is not aware of ILA’s ongoing hiatus from the negotiations since June.

Whether a legitimate oversight or a trite public response, the wording nonetheless shines a light on how this labor saga has mainly flown under the radar of stakeholders, even those who are supply chain professionals. Maybe, after an eventful two or so more years of labor disputes across several industries, murmurs of union unrest have become standard lexicon, an ordinary constant in today’s world.

That said, an ILA strike is still hypothetical, not imminent. However, when Oct. 1 does come around, and if there is an actual coastwide work stoppage, the conversations will certainly change and, for those caught off guard, the tone will be panicked as the impacts of a port shutdown from Maine to Texas will heavily disrupt the U.S. economy and freight movement.