Contract negotiations between East Coast dockworkers and their employers have reached a stalemate, fueling growing concerns that the Port of Baltimore could face a shutdown for the second time this year.
With less than a week before their union contract expires, longshoremen from Maine through Texas have been offered “unacceptable” wage increases, the International Longshoremen’s Association said this week. The union says it is prepared to strike if no agreement is reached by Monday with the U.S. Maritime Alliance, or USMX, which represents employers such as shipping lines and marine terminal operators.
The ILA has 85,000 members. In Baltimore, three ILA union locals represent about 2,400 workers, most of whom load and unload ships. The numbers working on a given day typically is determined by the number of vessels at the port and other activity.
“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,” said Harold J. Daggett, the ILAs international president and chief negotiator, in a news release.
The Maritime Alliance has said the workers have refused to negotiate.
“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,” the alliance said in a statement this week. “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.”
Daggett called that claim misleading, saying “the two sides have communicated multiple times in recent weeks.”
Port of Baltimore officials said this week they are closely monitoring those talks and urged management and workers to come to an agreement. The state agency manages Baltimore’s six state-owned marine terminals but is not a party to the ILA contract, as it operates on a “landlord” model. The state has a partnership with Ports America Chesapeake to operate Seagirt Marine Terminal and others.
“We implore both sides to come together and negotiate an agreement that properly compensates the men and women of the ILA while maintaining cost effective and efficient cargo flows,” the Maryland Port Administration said in a statement.
Scott Cowan, president of ILA Local 333 in Baltimore, said Wednesday he had no comment at this time on a potential strike.
Jonathan Daniels, executive director of the port administration, previously told The Sun that a strike would hurt Baltimore’s port recovery.
Baltimore’s maritime facilities have been in recovery mode since the shipping channel was largely shut down for more than two months after the cargo ship Dali hit a support pier of the Francis Scott Key Bridge on March 26, collapsing the span and killing six roadway workers. So far, the rebound has been progressing, Daniels had said.
“Anything that may potentially engage in a work stoppage is something we are very concerned with, especially with where we currently stand on our rebound and recovery after the incident earlier this year,” Daniels said in an interview earlier this month. “This is a cascading effect that impacts all ports that have ILA labor.”
Facilities in Baltimore and other cities already have seen some cargo diverted to West Coast ports, which then is moved across the country by rail.
The National Tree Co., one of the nation’s largest importers and wholesalers of artificial Christmas trees and decor, has been preparing for a potential strike since July, scheduling deliveries by container ship earlier than usual and diverting East Coast shipments to the West Coast, said Chris Butler, CEO of New Jersey-based importer. The wholesaler imports products from Asia to sell to retailers such as Amazon, Lowe’s, Macy’s and Wayfair.
Despite those steps, “15% of my inventory stock will be on the water if a strike happens, and it’s anyone’s guess when it will end,” said Butler, adding that the ships “will just sit there … and it creates a huge backlog.”
He believes a strike is inevitable, potentially leading to about five days of delays for each day of a stoppage. But he’s hoping any interruption would be resolved before Thanksgiving and a holiday period that accounts on 50% of National Tree’s sales.
“We are hopeful that it doesn’t happen in the first place,” he said. “It would be a devastating blow to the economy and to companies like ours,” and likely lead to increased shipping prices next year.
Port officials have told the ILA in Baltimore that the port would set aside a “safe area” for members to gather outside marine terminals if necessary. Cruise operations and military cargo are not expected to be affected by a work stoppage.
This article may be updated.