Learn how to navigate uncertainty in the supply chain with these key observations and tips for mid-September.
Navigating Labor Uncertainty: Key Updates for Supply Chain Planning Amid Potential Port Strikes
The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have yet to agree on a new contract, and talks at the national level have stalled. The ILA wants local agreements settled first, while USMX wants both national and local contracts negotiated together. With the current contract expiring on October 1, the ILA is threatening to strike—a move rarely seen in recent history.
In the past, the ILA and ILWU (International Longshore and Warehouse Union) continued to work without a contract while negotiations were ongoing. In 2022, the ILWU signed a new contract 23 days after the previous one expired. In 2014, they worked without a contract after it expired on June 30 and did not strike until nine months later when a new deal was reached.
During that dispute, longshoremen used strong tactics like slowdowns, temporary walkouts, and media campaigns to put pressure on management. The 2014-2015 conflict severely disrupted West Coast ports for months, with congestion lasting another six months after the new contract was signed. Despite all this, they didn’t fully walk off the job.
These past labor disputes have severely impacted ports and the flow of goods: