Retailers grow concerned over East Coast port strike as negotiations hit ‘crossroads’

NEW YORK – Another East Coast port strike is set to come to fruition a month from now if the current trajectory is maintained, and retailers are becoming more concerned.

The National Retail Federation penned a letter last week to both parties – the International Longshoreman’s Assn. (ILA) representing the dockworkers, and the U.S. Maritime Alliance (USMX) representing the employers – urging negotiations on a new labor contract to resume.

As of Dec. 4, no further talks are scheduled, according to Bloomberg. Parties must come to an agreement by Jan. 15, 2025, to avoid a strike.

“We know significant issues remain between the parties,” the NRF wrote. “However, we continue to believe the only way to resolve these issues and come to an agreement is to actually stay at the negotiating table. The continuing start and stop of the negotiations leads to further uncertainty in the supply chain, which continues to cause challenges.”

In October, East and Gulf Coast dockworkers went on strike for three days until a tentative agreement was reached on wages. The Jan. 15 deadline was agreed upon to resolve other outstanding issues, namely automation.

“The three-day strike in October had a significant impact on supply chain stakeholders that rely on the East Coast and Gulf Coast ports,” the NRF continued. “The additional costs from mitigation efforts as well as post-strike resumption are still being felt. Companies have continued to implement mitigation strategies because of the ongoing threat of another strike in mid-January if a new contract is not achieved.”

Earlier this month, both parties again highlighted automation as the key hang-up.

“The ILA is at a crossroads in our Master Contract negotiations with ocean carriers and employers,” the ILA wrote in a blog post Dec. 2. “At the center of this impasse is the employers’ push to expand the use of semi-automated rail-mounted gantry cranes. The ILA is not against progress, innovation, or modernization—but we cannot support technology that jeopardizes jobs, threatens national security, and puts the future of the workforce at risk.”

Port employers put out a statement a day later.

“Port operations must evolve, and embracing modern technology is critical to this evolution,” the USMX wrote. “USMX is not, nor has it ever been, seeking to eliminate jobs, but to simply implement and maintain the use of equipment and technology already allowed under the current contract agreements and already widely in use, including at some USMX ports.”

See also: