An unsolved resolution is resulting in ILA doubling down on threats to strike on October 1^st. Conflict between the ILA and USMX for a new contract agreement has escalated over the last few weeks. In particular, the ILA is fighting for a new contract with a 32% wage hike and higher pensions. Automation in ports is also an issue that resulted in a pause in negotiations in early June. Terminals at the Port of Mobile began using an Auto Gate system that autonomously processes trucks. After ILA released a video with its president, Harold Daggett, discussing the current situation last week, the USMX posted an update.

The main point of the update was to announce an unchanging current contract offer. Some of the offerings of the existing contract noted in the update include:

• The continuation of the current health care coverage.
• An increase to employment retirement fund contributions.
• Higher starting wages and industry-leading wage increases.

Another offer is to retain the existing technology language in the current contract agreement. The agreement formalizes that there will be no fully automated port terminals or use of semi-automated equipment. This is unless agreed upon by both USMX and ILA. Despite the disagreement, the update notes USMX’s willingness to reach a new deal by September 30^th.

ILA Doubling Down on Threats Despite The USMX’s Update.

In response to USMX’s update, the ILA wrote a letter of opposition, calling the statement misleading. The ILA believes that the claim of leading wages is false due to inflation. Compared to six years ago, living prices significantly increased when they entered the contract. Another response in the letter was due to USMX’s use of automation. Despite the contract requiring that the USMX does not use automation unless both parties agree, the ILA never agreed. ILA replies, “They continue to sneak in automated programs and eliminate our clerical functions behind our backs.” The letter then goes on to oppose USMX’s current healthcare coverage.

The new contract states that the ILA’s healthcare coverage will remain unchanged despite their desire for better coverage. Along with enhanced benefits, they want a hardship provision for severe cases for members who risk losing their benefits. ILA’s current pension plan has also been an area of concern that the letter addresses. They have constantly talked with USMX about increasing the current benefit amount. The belief is that their man-hour assessment is insufficient to cover the current funds. MILA (Managed Health Care Trust) also collects the first five dollars of the assessment, decreasing the amount. Cameras in the ports that monitor workers are another concern since they reportedly create a hostile work environment.

The Shipping Industry’s Response To The Situation.

As the strike date closely approaches, the shipping industry has responded in various ways. Shippers have already started rerouting their shipments to ports on the West Coast to avoid delays. They also are moving their cargo at earlier times and switching methods of conveyance if possible. With the situation potentially affecting supply chains internationally, it is essential to be informed of the latest updates. Contact A1 Worldwide Logistics at 305-440-5156 or info@a1wwl.com to protect your shipment during this period. We find the best action to take while keeping you informed through the process.