Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled again as the ILA pulled out of talks over job-cutting automation.
The ILA opposes automation and semi-automation at U.S. ports, asserting that these measures would eliminate jobs, while USMX argues that modernization is needed for efficiency and safety without necessarily cutting jobs.
Previously, the ILA and USMX agreed to extend their contract to January 15, 2025, covering issues like automation and healthcare benefits, but the dispute over automation remains unresolved.
The ILA, wary of signing a no-strike clause, is holding off on accepting a 62 percent wage increase tied to it.
With contract talks likely resuming before January 15, there’s a strong possibility of another strike, which could coincide with the start of the next U.S. presidential administration.
A potential January strike would disrupt cargo movement during a typically slower economic period but could affect significant U.S. trade, including container and Ro-Ro traffic.
Longshore foremen at British Columbia ports, represented by the International Longshore and Warehouse Union Local 514, are planning a legal challenge against a government order to return to work and submit to binding arbitration in their contract dispute with the British Columbia Maritime Employers Association (BCMEA).
The union claims that the order from Canadian Labor Minister Steve MacKinnon is unconstitutional and intends to file a "charter challenge" against the Canada Industrial Relations Board's (CIRB) power to enforce such an order.
Meanwhile, Montreal’s dockworkers, represented by CUPE Local 375, are also resisting similar government intervention, arguing that it infringes on their rights and discourages employers from bargaining fairly.
The BCMEA plans to resume port operations despite the union’s legal efforts. Local 514’s challenge will first go to the CIRB, with potential escalation to Canada’s Supreme Court if necessary.
This legal approach mirrors a recent move by the Teamsters Canada Rail Conference, which is also contesting MacKinnon’s back-to-work order after a separate lockout by Canadian rail companies in August.
The Panama Canal Authority (ACP) is seeking $1.2 to $1.4 billion to develop a land bridge across Panama, aiming to move containers from ships too large to pass through the canal.
The project would involve unloading containers from oversized ships on the Pacific side, transporting them by truck across the isthmus, and reloading them onto vessels on the Atlantic side, potentially increasing the canal's annual container throughput by over 60% (5 million TEUs).
ACP Administrator Ricaurte Vásquez Morales unveiled the plan, which would compete with Colombia's Port of Cartagena that currently handles transshipment for these large vessels. This initiative is a response to the canal’s capacity limits, compounded by droughts that restrict the canal’s draft.
Despite the 54,000 acres already purchased by the ACP for the project, external funding is needed as the Panamanian government will not finance it.
If successful, the project could mitigate the canal's capacity constraints and retain cargo otherwise diverted to Cartagena. |
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