Port labor talks threaten U.S. agriculture and meat exports
The U.S. agriculture sector is preparing for possible disruptions as labor negotiations at East and Gulf Coast ports remain unresolved.
Talks between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) stalled in mid-November due to disagreements over automation, showing minimal progress since.
Although a tentative wage agreement was reached in October, followed by a temporary contract extension after a brief three-day work stoppage, that extension expires on January 15.
Concerns about a strike are already impacting U.S. red meat exports, according to Dan Halstrom, President and CEO of the U.S. Meat Export Federation. Dan Halstrom noted that ocean carriers have started applying surcharges in anticipation of disruptions, while exporters are seeking alternative shipping routes where possible.
East and Gulf Coast ports handle 45% of U.S. pork exports and 30% of beef exports, totaling approximately $100 million in red meat shipments weekly.
Another strike could severely impact chilled product shipments and damage the U.S.'s reputation as a reliable 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,” states a release from the United States Maritime Alliance.
In addition to wage increases, the USMX emphasized the need for investments in technology and infrastructure to improve safety, productivity, and efficiency. These upgrades are expected to benefit ILA members and businesses nationwide.
“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.”
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