The Recycled Materials Association (ReMA) joined a coalition of over 260 associations urging the International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX) to return to the negotiating table and reach a new labor contract before the new Jan. 15 contract expiration date.
While the ILA and USMX agreed to a contract extension earlier this Fall, negotiations stalled again when ILA walked away from the table on Nov. 13 due to concerns about semi-automation.
In the letter, the associations note that the only way to resolve both parties’ concerns and reach an agreement is to stay at the negotiating table, stating, “the continuing start and stop of the negotiations leads to further uncertainty in the supply chain, which continues to cause challenges.”
The impacted ports handle more than half of the nation’s cargo ship trade volume, and the three-day strike in October had a significant impact on supply chain stakeholders who rely on East and Gulf Coast ports. Analysts estimated the associated costs of a strike could be as high as $5 billion each day of work stoppage, which is nearly 6% of daily gross domestic product (GDP). It could take up to six days per day of port closure to fully clear the backlog. For example, if a strike that lasts five days, it may take up to a month to return to a normal speed of operations.
The letter acknowledges that automation and technology are the biggest issues between the parties but notes that it is critical for the ports and terminals to modernize their systems and processes to remain globally competitive and handle the rise of trade volumes.
“Resolving this labor dispute is crucial to ensuring trade of recycled materials, as approximately 54% of U.S. exports of recycled products are traded through the potentially impacted ports,” said Adam Shaffer, ReMA’s assistant vice president of international trade and global affairs.
“ReMA will encourage all parties to return to the negotiating table to resolve this dispute and will continue to monitor new developments for our members,” said Kristen Hildreth, ReMA’s assistant government relations and strategic partnerships.
