ILA-USMX Contract Status

Executive summary:

• A 3-day strike from October 1-3, 2024 ended with a 65.1% wage increase over 6 years
• The wage deal was “provisional” meaning, if ILA accepted wage increase there would have been a no-strike clause

Union’s stance on automation:

• ILA has vowed to continue its “hell-bent” fight against automation
• Carrier executives frustrated that U.S. ports lag global terminals in efficiency (ex: Charleston ranked 53rd)
• ILA noted that by extending the contract until January 15, 2025, it maintains it’s ability to fight for other items like automation

What comes next:

• November 13, 2024: The ILA halted negotiations with maritime employers due to what it said was a management proposal for introducing semi-automated equipment that would eliminate longshore jobs. The technology at the heart of the dispute is said to be what’s already in use at New Jersey and Virginia marine terminals (Source: Journal of Commerce)
• December 5, 2024: Rail-mounted gantry cranes (RMGs) at container terminals have emerged as the deciding factor for the ILA in whether they will agree to a new master contract that avoids another port strike in January (Source: Journal of Commerce)

Political factors:

• The Teamsters union praised President-elect Donald Trump’s selection of pro-union Republican, Lori Chavez-DeRemer, as his nominee for U.S. Labor Secretary (Source: Wall Street Journal)
• Chavez-DeRemer’s selection has drawn mixed reactions from the logistics industry, with the ILA and Teamsters viewing Chavez-DeRemer as solidly behind unions while trucking groups see a foe of the owner-operator driver model used widely by motor carriers (Source: Journal of Commerce)

 

Canadian Labor Disputes

• Canada’s Labor Minister took direct action to end coast-to-coast port closures by ordering binding arbitration in contract disputes between maritime employers and longshore workers, forcing ports to reopen. (Source: Journal of Commerce)
• MacKinnon invoked authority under Canada’s labor code that will force longshore unions in BC & Montreal and their respective employer groups to come to terms on new collective bargaining agreements with the aid of a government arbitrator. (Source: Journal of Commerce)
• Strike actions by unions and ports ownership lockouts had hit both coasts of the key U.S. northern trade partner. Vancouver and Prince Rupert have been shut down since November 4, while Montreal dockworkers were locked out by ports management on Nov 11. (Source: CNBC) (It will take several weeks for the congestion to clear)
• Canadian rail workers: CIRB ordered all employees to return to work, with CN employees returning on August 23 and CPKC employees returning on August 26. The CIRB also ordered binding arbitration to begin on August 2. No updates provided.
• Unifor members of Council 4000 and Local 100 at Canadian National Railway announced Nov. 25 that they voted overwhelmingly in favor of strike action if an agreement is not reached with the railroad management by Jan. 1. Negotiations between Unifor and CN resumed in Montreal on Nov. 25 and will last until Dec. 8. (Source: NCBFAA)