A new labour contract has been tentatively agreed that will limit full automation of terminals and equipment at East and Gulf Coast Ports in the US.
In June 2018, following months of negotiations, the International Longshoremen’s Association (ILA) and the US Maritime Alliance agreed on a proposed contract that will run until October 2024.
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Article 11 of the current master contract, which addresses new technology and automation, has been replaced with new language stating that no fully automated terminals and no fully automated equipment will be implemented during the life of the contract.
The new master contract will not, however, enter into force until ILA members vote to ratify the deal next month when the current contract expires.
The ILA this week released a video urging members to approve the deal with the US Maritime Alliance worth US$18.3bn.
“We can’t quantify the value of the protections we received on automation,” ILA executive vice president Dennis Daggett said in the video. “Getting to this point took a lot of hard work.
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By GlobalData“Without a doubt, the tentative agreement is unique because it is perhaps the only collective bargaining agreement to date that imposes definite limits to automation while incorporating a workforce protection program for the implementation of new technology.”
As well as prohibiting fully automated terminals and equipment, it creates a model for workforce protection as technology creates new jobs, outlines an expedited arbitration process to address labour grievances, and boosts wages, holidays and healthcare compensation.
Retailers and importers watch port contract negotiations closely as any contract-related disputes can lead to enormous disruption to their supply chains. Prolonged contract talks led to a slowdown and congestion issues at West Coast ports during 2014 and early 2015.
