Strike mobilisation efforts are becoming increasingly likely after the International Longshore Association (ILA) announced that it plans to present final contract demands during an in-house meeting set for early September.
Potential labour strikes, that would suspend six out of 10 of the busiest ports in the US, look poised to transpire merely weeks before the presidential election.
Should demands be levied to no avail before the deadline on 30 September, the ILA plans to discuss strike strategies during its meeting on 4-5 September, reported Bloomberg.
Contract negotiations for trade hubs spanning from Boston to Houston have stalled since June after the dockworker union called off wage talks with the United States Maritime Alliance (USMX), which represents employers of the East and Gulf Coast longshore industry.
Bloomberg warns that the threat of strikes alone could ignite trade disruptions within the region as shipping companies look to prepare contingent routes for their shipments. In line with this analysis, West Coast ports suffered a hit to its collective market share last summer amidst a long-standing round of contract negotiations between the union and its employers, which eventually resulted in a six-year deal.
Discontentment amongst union members lies in a perceived lack of fair distribution of the unprecedented profits made by shipping companies during the pandemic, coupled with increasing inflation, according to Bloomberg.
READ: New bill seeks to limit union power in light of US West Coast strikes
There is presently a significant discrepancy in the scale of wage increases between the union and its West Coast counterparts, reported Bloomberg. The union now plan for demands exceeding the 32 per cent increase won by the West Coast union.
“With less than 30 days to go before the end of our current Master Contract when these meetings are held, we must prepare our locals and our ILA membership for a strike on 1 October,” said ILA President Harold Daggett.
The potential strike comes at a precarious time for global maritime trade as shipping companies continue to avoid hostile Red Sea routes.
