Longshore labor

The president of the International Longshoremen’s Association said maritime employers “are running out of time” to sign a new contract before the current deal’s expiration on Sept. 30.

Maritime employers at the Port of Vancouver prevailed at a last minute federal hearing over a strike vote that longshore foremen took against DP World.

It was only when assets stopped circulating that ocean carrier profits took off, thanks to containers stranded on idle ships that lined up outside of congested ports during the worst of the pandemic disruption.

Over 150 groups representing a variety of US businesses called on the White House to bring labor and management together, but it’s not clear if the ILA would welcome outside influence.

The Port of Charleston and the International Longshoremen’s Association are ending a long-running fight over crane jobs at the terminal by allowing operators to decide whether to join the union.

The pointed sentiments expressed recently by the ILA are a departure from the low-key, business-like approach to prior negotiations along the East and Gulf coasts, and thus unfamiliar to shippers trying to weigh the risks of labor strife, writes Peter Tirschwell.

The International Longshoremen’s Association cited the “massive profits” ocean carriers have booked in recent years to highlight the wage proposal it plans to push in contract talks with employers.

The International Longshoremen’s Association said it has called off talks for a new six-year labor agreement due to automation efforts at Maersk-operated marine terminals.

The union representing Canada’s West Coast longshore foremen say they are holding off a strike vote while a mediation process takes place with maritime employers.

Maritime employers along Canada’s West Coast have filed a complaint asking the federal government to further intervene in stalled talks with the union representing longshore foremen.

The International Longshoremen’s Association and its maritime employers are highlighting amicable outcomes to previous contract talks as they get ready to restart coastwide negotiations.

The risk of a strike along the East and Gulf coasts stems from the ILA believing it is entitled to a fair share of the ocean carriers’ pandemic windfall of over $400 billion, as estimated by one industry analyst.

The “essential” designation request, which if granted would have barred workers from striking, comes as talks on a new contract have dragged on for seven months with no resolution.

Both sides say cargo is leaving Montreal due to the inability to reach a new contract deal with the port’s main longshore union.

The decision to not hear the appeal leaves intact a ruling that allows the International Longshoremen’s Association to sue ocean carriers that use the Leatherman terminal, an apparent blow to the so-called “hybrid” labor model used in Charleston.

Stephen Hennessey joined PMA in 2004 after holding management positions in the shipping and trucking industries, including with Sea-Land Service, Roadway Express and Horizon Lines.

The International Longshoremen’s Association’s May 17 deadline will provide an almost five-month window for the union to wrap up talks on a master contract covering the East and Gulf coasts.

Though talks have seemingly been on hold, Maher Terminals’ Gary Cross said he has “no doubt” the longshore union and port employers along the East and Gulf coasts will reach a new agreement before the existing deal expires.

While the union said industrial action has ended, the disruption caused by work stoppages that lasted hours and days at a time will take weeks to wind down.

The deal ends a more than decade-long case that involved claims that terminal operator ICTSI Oregon incurred damages when ILWU Local 8 engaged in unlawful work practices and slowdowns from 2012 to 2017 at Terminal 6 in Portland.

Stalled labor talks covering the East and Gulf coasts are adding to the uncertainty shippers are already feeling given recent disruptions involving the Red Sea and Panama Canal, the National Retail Federation says.

The disruption has worsened since last month after the union doubled the weekly work stoppages from around 24 hours to up to 48 hours at DP World’s terminals.

Container shipping is hardly the only industry to feel the impact of organized labor’s bargaining power, nor is it unique in dealing with heightened geopolitical flashpoints or regulatory pressures tied to decarbonization, writes Journal of Commerce Executive Editor Mark Szakonyi.

The union chief representing Montreal dockworkers said the big issue of wages has yet to be hashed out less than a month before the deadline for a possible strike at Canada’s second-busiest port.

Shippers who have built East and Gulf coast routings into their supply chains are taking no chances, raising the need for contingency plans in discussions with carriers and NVOs ahead of 2024 contract renewals.

The incident comes as dockworkers announced a further series of strikes this week at DP World's four Australian terminals in an ongoing row over new rostering arrangements.

Alongside broader talks on wages for its members, the International Longshoremen’s Association said individual ports need to use more union supervisors and foremen, particularly throughout the South.

The ILA president says further progress on a new master contract, as well as port-specific local deals, can’t happen until the two sides agree on coastwide pay hikes.

Ahead of an International Longshoremen’s Association conference, president Harold Daggett has warned union rank-and-file to be prepared for the “possibility of a coast-wide strike.”

Six amicus briefs have been filed to the US Supreme Court supporting the South Carolina Ports Authority’s position that the ILA is illegally forcing carriers to boycott Charleston’s Hugh Leatherman Terminal as a means to acquire jobs that belong to state employees.

The Georgia Ports Authority plans to open a third ocean terminal in Savannah in 2030 and says updating its current hybrid labor model to an all-union workforce could cost the port $600 million in its first operating year.

While neither side has made public its terms for a new collective bargaining agreement, sources familiar with the talks say the union is looking for a 20% increase in wages over four years and a faster seniority path for dockworkers.

Discretionary cargo is returning to the West Coast as the confidence of retailers is boosted by ratification of the longshore labor contract in late August and the ability of the ports to immediately handle more cargo.

The financial health of the powerful International Longshore and Warehouse Union is in jeopardy as the union seeks to avoid paying $19 million in damages to a Portland, Ore., terminal operator over disruptive job actions years ago.

Some 75% of union members participating in the vote agreed to ratify the tentative contract that was reached in mid-June, opening the door to labor peace at West Coast ports at least through mid-2028.

In addition to the typical annual planning, such as for budgets and freight rates, US importers need to start weighing contingency plans for two potentially disruptive occurrences next year — continued low-water levels along the Panama Canal and the expiration of the International Longshoremen’s Association contract, writes Lars Jensen.

Ports of Vancouver and Prince Rupert are clearing out the backlog of containers that built up during the two weeks of dockworker strikes in July, with no significant vessel, rail or trucking delays to report, according to stakeholders.

Sources say USMX has made the ILA an offer on par with the increases the ILWU secured in its latest contract. However, the ILA also wants stronger protections for work jurisdiction and automation.

Negotiators for shipping lines and office workers in Los Angeles-Long Beach report that progress is being made in the ILWU Local 63 Office Clerical Unit (OCU) contract negotiations, but the two sides have work to do on the issues of wages, pension benefits and technology.

The latest lawsuit from International Longshoremen’s Association ups the damages the union is seeking from ocean carriers that used the Port of Charleston’s Hugh K. Leatherman terminal.