The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) are at a deadlock on this the 3rd day of port closures along the East and Gulf Coast. Although both sides are communicating with each other, that is quite different than sitting down and negotiating out all points of the contract.
The most asked question we have been receiving is “How long is this going to last.” Our expectation at this point is that we will see this continue through next week.
USMX seems to be making the effort to bring both sides together with a statement made yesterday, “Reaching an agreement will require negotiation – and full focus, is on how to return to the table to further discuss these vital components, many of which are intertwined.” The last reported offer from the USMX to the ILA, in hopes to draw both parties together for a conversation, was close to a 50% increase to wages spanning over the next 6 years.
ILA continues to reiterate that the 2 primary grievances are: Increased wages and no form of automation that would replace historical work functions. There are many opinions as to what an actual acceptable amount, of increased wages would be, we heard from a source this week that is around 75%. In our opinion there is definitely a middle ground. The White House put out a statement on October 1st stating, “Ocean carriers have made record profits since the pandemic…It’s only fair workers who put themselves at risk….see a meaningful increase in their wages as well”. Acting US Labor Secretary Julie Su, has made similar comments in recent days. The over whelming message, although a little slanted toward the ILA, is that ALL parties must work this out together. As of today, the Taft-Hartley Act does not seem to be a method that the administration is considering to put an end the strike. Only time will tell if that standpoint changes.
We continue to monitor news outlets and meet with trade organizations and government entities for updates and movement. The details are quite limited. As we pick up new pieces of information we will continue to share with you.
