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Formal talks have reached an impasse as the union and the United
States Maritime Alliance employer group wrangle over pay,
automation, healthcare and retirement benefits.
A source familiar with the negotiations said the ILA has asked
for a 77% pay bump over the life of the new contract. Three
experts told Reuters the final increase would likely improve on
the 32% rise the West Coast longshore union negotiated last
year.
ILA International President Harold Daggett has warned that union
workers will walk off the job if a new labor agreement is not
reached before the current six-year contract expires on Sept.
30.
USMX said in statements it has been trying to set a meeting with
ILA to resume talks.
Any work slowdown or stoppage would affect key ports - including
New York/New Jersey, Houston and Charleston, South Carolina -
backing up goods ahead of the key holiday season and U.S.
presidential elections.
Such disruptions would have "serious ripple effects" on global
supply chains already under pressure from Red Sea diversions,
said Vincent Clerc, CEO of A.P. Moller-Maersk, last week at an
event in Los Angeles.
Maersk is a USMX member company. When asked about the status of
the talks, Clerc said negotiators previously had been able to
"take it from the brink" and reach an agreement.
Shippers that depend on affected ports are not taking chances,
and many have brought in goods early to mitigate risk.
Still, each day without a deal fuels worries about a strike.
The National Retail Federation on Tuesday urged the two sides to
return to the bargaining table, following similar calls by the
Retail Industry Leaders Association and American Apparel &
Footwear Association.
"A strike or other disruption would significantly impact
retailers, consumers and the economy. The administration needs
to offer any and all support to get the parties back to the
table to negotiate a new contract," NRF CEO Matthew Shay said in
a statement.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Richard
Chang)
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