The clock is about to strike midnight. A stalemate between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), which represents the ports, persists as of this publication.

With the current contract set to expire at midnight Tuesday – and the longshoremen set to strike – the work stoppage would shut down all Atlantic and Gulf Coast ports from Maine to Texas. That also includes the Port of New York and New Jersey, which would snarl global trade and supply chains.

“With 36 hours to go before the end of the ILA-USMX contract tomorrow evening, the 85,000 members of the International Longshoremen’s Association, joined in solidarity by tens of thousands of dockworkers and maritime workers around the world, will hit the picket lines at 12:01 am on Tuesday, Oct. 1, 2024, and strike at all Atlantic and Gulf Coast ports from Maine to Texas,” the ILA wrote in an update on Sunday at noon. “United States Maritime Alliance refuses to address a half-century of wage subjugation where Ocean Carriers profits skyrocketed from millions to mega-billion dollars, while ILA longshore wages remained flat.”

In addition to significantly higher wages, the ILA is also calling for a total ban on automation of cranes, gates and container-moving trucks at the ports.

A strike would mark the ILA’s first since 1977.

Opposing sides

USMX filed an Unfair Labor Practice (ULP) charge with the National Labor Relations Board (NLRB) Sept. 26.

“USMX has been clear that we value the work of the ILA and have great respect for its members. We have a shared history of working together and are committed to bargaining,” USMX said in a statement that same day. “Due to the ILA’s repeated refusal to come to the table and bargain on a new Master Contract, USMX filed an Unfair Labor Practice charge with the National Labor Relations Board and requested immediate injunctive relief – requiring the Union to resume bargaining – so that we can negotiate a deal.”

ILA instantly shot back at that action, describing it as a continuation of USMX’s “weak publicity campaign against ILA.”

“USMX filing these charges four days before the expiration of the current Master Contract clearly illustrates what poor negotiating partners they have been,” the ILA said. “If it wasn’t for the ILA engaging in serious and productive negotiations, most of the local agreements would not have been settled over the past year.”

The exchange followed other back-and-forth statements between the sides earlier last week.

“Despite additional attempts by USMX to engage with the ILA and resume bargaining, we have been unable to schedule a meeting to continue negotiations on a new Master Contract,” USMX said Sept. 23. “We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time.”

‘A low-ball wage package’

ILA contended that the stalemate remains because USMS continues to offer longshoremen an “unacceptable wage increase package.”

“USMX knows what our bottom line with wages needs to be for our ILA rank-and-file to ratify a new Master Contract Agreement,” said ILA International President and Chief Negotiator Harold Daggett in a Sept. 23 statement. “They call me several times each week trying to get the ILA to accept a low-ball wage package.

“My ILA members are not going to accept these insulting offers that are a joke considering the work my ILA longshore workers perform, and the billion-dollar profits the companies make off the backs of their labor,” Daggett continued. “The blame for a coast wide strike in a week that will shut down all ports on the Atlantic and Gulf Coasts falls squarely on the shoulders of USMX.”

On Sept. 26, Eric Landskroner asked Gov. Phil Murphy about the situation during his most recent television call-in show on News 12 New Jersey.

“I don’t know that anybody wants a strike. It has big economic implications. It has big implications for the actual workers themselves,” said Murphy. “In fact, I’m kicking a call off tomorrow morning with a whole range of local elected officials, with the Port Authority [of New York and New Jersey], to just go through what the preparations look like; what the implications may be. And we want to make sure everybody is sort of up to speed on what they might be.

“Listen, I’m a labor guy. That doesn’t mean that I don’t take both sides seriously – because I do. And you always have to,” Murphy added.

Making plans

He described it as an odd situation. That’s because neither New Jersey nor the Port Authority or Biden administration are party to the negotiations.

On Sunday, the president said he had no plans to intervene and invoke the powers of the federal Taft-Hartley Act for an 80-day cooling-off period.

“But I do know the port – which is so well-run, I have to say – is making the necessary plans. I know they’re accelerating de-boarding perishables, medical equipment, essential items in advance of midnight on Monday,” said Murphy. “And I know that they are working with the ILA on if there is a strike. And again, we don’t take that lightly – a strike is a big deal when you are talking about ports, with big implications.

“But that if there is a strike, that they are able to protest with a certain amount of freedom. We shall see,” he said. “This is something that we’re keeping a very, very close eye on. We are the biggest port on the East Coast. Depending on which day of the week, we are the biggest port in the country. So, this will have implications, without question, for New Jersey and the greater metro area.”

The ILA says it plans to update the public and media on new developments Monday.

Stay with NJBIZ for the very latest on this breaking story.

In other port news:

A major project at Port Newark will be a gamechanger for efforts to expand transportation electrification in the freight logistics and drayage industry. Click here to read more.