By Jamie Martin
U.S. agriculture is facing potential export challenges as labor disputes at East and Gulf Coast ports continue. Contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) broke down in mid-November over automation concerns. Despite a temporary contract extension following a three-day work stoppage and an earlier agreement on wages, the extension expires on January 15.
Uncertainty is already affecting U.S. red meat exports, according to Dan Halstrom, President and CEO of the U.S. Meat Export Federation. Dan Halstrom pointed out that ocean carriers have begun imposing surcharges in anticipation of a strike, and exporters are looking to reroute shipments where possible.
About 45% of U.S. pork exports and 30% of beef exports move through these ports, with weekly shipments valued at $100 million. Another strike would limit shipping options for chilled products and undermine the U.S.'s reputation as a dependable supplier.
“A new Master Contract is essential to keeping our ports open and our supply chains strong. That is why USMX has tentatively agreed to a 62% wage increase for ILA members over the next six years, contingent upon finalizing all outstanding issues a historic leading wage increase that showcases our commitment to American workers,” stated the United States Maritime Alliance.
In addition to wages, USMX stressed the importance of modernizing port infrastructure to enhance safety, productivity, and efficiency, which would benefit ILA workers and U.S. businesses alike.
“We have been clear that this can, and will, be done in a way that not only protects jobs, but adds new jobs as our operations expand,” says the United States Maritime Alliance, Ltd. “Evolving port operations and increasing wages and jobs for the ILA are not mutually exclusive. Modern technology is proven to dramatically increase the amount of cargo that can be moved through a port annually. ILA members make more money when they move more cargo and ports need to hire more workers to manage that growth. Ultimately, these improvements serve to bolster U.S. industries by creating supply chains that are more resilient and efficient, which keeps cargo moving and helps manage costs and improves reliability for American companies that depend upon our operations every minute of every day.”
Photo Credit: gettyimages-sstajic
Categories: National