Talks between the United States Maritime Alliance and the International Longshoremen’s Association have collapsed in recent weeks over the issue of introducing more automation at East Coast ports, including the Port of New York and New Jersey, just a month and a half before a new deadline – and possible new strike.
A dock workers strike in October lasted 72 hours, closing 36 ports from Maine to Texas. More than 47,000 longshoremen – represented by the ILA, a union based in North Bergen – left their jobs early this month, including 4,500 from New York and New Jersey.
They agreed to return to work by Jan. 15, 2025, with pay increases and a new deadline to iron out other contract details, including the automation issue.
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Union members fear that port automation could lead to job losses and want to negotiate the use of such technology by maritime operators.
Leaders at the ILA had halted contract talks in June after learning that some form of automation had been introduced at the Port of Mobile, Alabama, a move they said violated their existing contract.
“Automation, whether full or partial, is replacing jobs and eroding the historic work functions that the ILA has fought hard to protect,” union president Harold Daggett said in a Dec. 3 statement on Facebook. “The ILA is prepared to strike again if no agreement is reached.”
The Lyndhurst-based shipping alliance, also known as USMX, represents shipping lines and port terminal operators.
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“Port operations must evolve, and embracing modern technology is critical to this evolution,” USMX said in a Dec. 3 statement promoting automation. “It means improving performance to move more freight more efficiently through existing improvements in facilities critical to American workers. consumers and businesses.”
“Due to the lack of available new land at most ports, the only way U.S. East and Gulf Coast ports can handle more volume is to densify the terminals – allowing more cargo to move through their existing footprint” , according to USMX. It has been proven that this can be achieved while providing benefits to both USMX members and the ILA.”
A strike could turn the global supply chain upside down
A strike has the potential to upend the global supply chain and national economy. The October strike sparked fears that it could have disrupted the busy 2024 Christmas shopping season.
Although the effect of the October strike was short-lived, consumers panicked buying water bottles and paper products, including toilet paper, even though most toilet paper is produced in the US.
Economic activity at the ports affects many types of businesses, such as warehousing and transportation, which could result in work stoppages and put more than 100,000 workers out of work, according to news reports.
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The far-reaching consequences of a port strike for companies and consumers even reach the kitchen table.
Consumers would be the first to notice shortages of perishable products, as supermarket aisles could run out of popular fruits like bananas within weeks as about two-thirds of U.S. bananas arrive at East Coast ports.
Ultimately, the Port Authority of New York and New Jersey, which oversees ports in both states, said it took less than a week to clear the backlog of goods after the October strike.
In New York and New Jersey, the economic impact on the 19 counties surrounding both states’ ports was $250 million to $300 million for each day of the strike, Port Authority officials said.
This story contains material from USA Today.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
E-mail: munozd@northjersey.com; Twitter:@danielmunoz100 and Facebook
This article originally appeared on NorthJersey.com: NJ dockworkers’ contract talks stalled over adding automation
