Talks Between U.S. Dockworkers, Port Operators Break Down Again

Unionized dockworkers and U.S. port operators restarted labor negotiations last week in an effort to reach a new contract before the current one expires in January 2025. The talks quickly broke down, however, after just two days. A path forward is not yet clear.

As Connecting the Dots reported in early October, the two parties are largely deadlocked due to disagreements over the use of automation. The International Longshoremen’s Association argues automation threatens jobs, while the United States Maritime Alliance (USMA), which represents employers, says automation is necessary.

The current impasse follows a tentative agreement reached in early October of this year that ended a three-day strike across Atlantic and Gulf Coast ports and extended the workers’ labor contract until Jan. 15, 2025. If the parties are unable to reach a long-term agreement by that date, the union could strike again, an issue that would wreak havoc on the industrial metals and wider manufacturing industry. Indeed, according to the National Association of Manufacturers (NAM), even a brief work stoppage could have major economic consequences for the industries and the U.S. economy.

Specifically, a NAM study found strike at East and Gulf Coast ports would jeopardize $2.1 billion in trade every day and could reduce gross domestic product by up to $5 billion a day.