U.S. retailers are growing increasingly nervous about the prospects of a workers strike at East and Gulf Coast ports, according to industry group the Retail Industry Leaders Association (RILA).
That sentiment has sharpened as the calendar pages turn toward the September 30 expiration date for the master port labor contract between the International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX).
According to RILA, little positive progress has been reported as that date approaches. And recent signals from the ILA suggest the union has tabled the issue for another month and is preparing its 85,000 members to strike. The ILA-USMX contract covers 36 ports on the U.S. East and Gulf Coasts, which handle as much as 56% of all U.S.-inbound containers in a given month.
In response, RILA said, “A strike along our East and Gulf Coast ports would present not only a significant logistical challenge for retail supply chains but could endanger the U.S. economy, as well. It’s unclear why, with weeks to go before the contract expiration, the ILA is now turning its attention to strike planning rather than returning to the negotiating table to work toward a resolution. This move ignores the enormous economic stakes that are currently at play.”
The timing of a potential strike is particularly difficult because the winter holidays and peak shipping season are drawing near. And retail supply chains already have their hands full with challenges such as the ongoing Red Sea conflict, extreme weather conditions, and global unrest.
“We urge both sides to return to the table and restart negotiations in short order,” the RILA statement said. “Absent positive developments in the coming weeks, the Biden administration needs to engage both sides and help reach a resolution that averts any labor stoppage at these crucial commerce gateways.”
