US EAST COAST DOCKWORKER UNION PRESIDENT VOWS TO ‘HIT THE STREETS’ ON OCTOBER 1
The union threatening to go on strike at ports along the US east and Gulf coasts from October 1 has come out with a renewed tough stance over wage negotiations as the clock ticks down to what could be a massive supply chain dislocation for global container shipping. Contract negotiations have broken down between the International Longshoremen’s Association (ILA) and port operators. The current agreement, which covers about 45,000 dockworkers at facilities including six of the 10 busiest US ports, expires September 30. The ILA have begun wage scale meetings to review their contract demands with its president, Harold Daggett, warning yesterday in a video uploaded to the union’s website: “The ILA most definitely will hit the streets on October 1st”. Meanwhile, in Canada, the union representing foremen at British Columbia’s ports say members have voted overwhelmingly to authorise a strike, if necessary, in a labour dispute with port employers. Local 514 of the International Longshore and Warehouse Union, representing ship and dock foremen, said in a statement that members voted 96% in favour of authorising a strike. However, no 72-hour strike or lockout notice has been issued.
MSC COMES TO THE AID OF ONE, HMM AND YANG MING
THE Alliance will become the Premier Alliance from next February, with Ocean Network Express (ONE), HMM and Yang Ming Marine Transportation as partners, and the world’s largest container line helping plug gaps on Asia-Europe tradelanes. From next year there is set to be the biggest overhaul in liner alliances in a decade, with Mediterranean Shipping Co (MSC) ditching Maersk in the 2M vessel sharing agreement to largely go it alone, and Germany’s Hapag Lloyd subsequently exiting THE Alliance to join the Danish carrier in what will be called the Gemini Cooperation. The liner switches had left the remaining members of the all-Asian THE Alliance as the smallest grouping on the main east west trades. Today, the three Asian carriers reaffirmed they will remain partners for at least another five years through to the end of the decade, while unveiling a new branding, Premier Alliance, “Collectively this new tripartite alliance will offer strong, reliable and highly dependable end-to-end direct port container services to its customers on both the transpacific and Asia-Europe trades,” said Jeremy Nixon, CEO of ONE.
POTENTIAL PORT STRIKE HAS RETAILERS, MANUFACTURERS SCRAMBLING
Retailers and manufacturers are seeking to mitigate a potentially multibillion-dollar hit if members of the International Longshoremen’s Association go on strike beginning Oct. 1 at 13 of the nation’s major East Coast and Gulf Coast ports. The contract between the ILA and the United States Maritime Alliance, which negotiates on behalf of management of the ports, terminals and shipping lines, is due to expire at midnight on Sept. 30. The contract covers 25,000 workers and ports stretching from Boston to Houston, the ILA said. Billions of dollars’ worth of imported goods, from cars and light trucks to electronics to food, clothing, jewellery and agricultural products come into the U.S. through East Coast and Gulf Coast ports. Members of the National Retail Federation (NRF) have been concerned about the potential for the strike for months, according to Jonathan Gold, NRF vice president of supply chain and customs policy.
CARGO SHIPMENTS FACE DELAYS IF AIR CANADA PILOTS GO ON STRIKE
Air cargo shipments will be halted on Sept. 19 at Air Canada if pilots follow through on a threat to strike without a new labour deal. The airline on Monday said it is finalizing contingency plans for a phased shutdown of most operations. Talks between the company and the Air Line Pilots Association, representing more than 5,200 pilots at Air Canada (TSX: AC) and Air Canada Rouge, are stalled and the parties remain far apart on contract terms. Unless an agreement is reached by Sunday, either party may issue a 72-hour strike or lockout notice, which would trigger the carrier’s three-day wind-down plan. Air Canada said it is alerting travellers and shippers about the potential work stoppage so they can adjust plans as needed. Air Canada and ALPA have been discussing a collective bargaining agreement for 15 months. Sixty days of mediation by the Canadian government ended on Aug. 30, triggering a three-week cooling-off period before either side can take action against the other. The pilots recently authorized union leaders to call a strike in the event talks remain stalled. The airline has offered its pilots a 30% pay hike, Bloomberg News reported last week, citing people familiar with the matter. Pilots at Canada’s largest carrier would receive a minimum 20% increase in pay upfront, which would be followed by annual hikes over three years, the report said.