News / Talks rumoured to be underway after USMX urged ILA back to the table

Photo: ILA Facebook

There is growing noise in the market that talks between the ILA and USMX are underway.

Today the ILA, notably, had not updated its Facebook page – where it has been making announcements – for more than 16 hours.

No images, no speeches, no noise at all, which is uncharacteristic. There have also been no statements from the USMX.

And speculation is growing on social media that negotiations may have restarted.

Peter Mento, commercial director at DSV, wrote: “Rumors are swirling that a tentative deal is in the works that would have the ILA back to work as early as next week.”

Another said the agreement could be signed tomorrow, with the ports open from Monday.

It may be a case of hope over reality. But with the White House and businesses urging the pair to talk, and with an estimated $12bn short-term cost already to the US economy, it seems highly likely that talks will have resumed.

Whether they can get past the ILA’s hardline on automation, however, is another thing.

“Crossing fingers”, said one social media poster.

Yesterday, USMX renewed its call to the ILA to begin negotiating again as the US east and Gulf coast port strike goes into its third day.

USMX now appears to be the only party which can bring a halt to the strike, following the White House’s refusal to intervene, but is not willing to rubber-stamp the ILA’s demands without a negotiation.

It said yesterday: “USMX’s goal continues to be focused on ratifying a new master contract that addresses all the critical issues the parties need to bargain.

“Reaching an agreement will require negotiating – and our full focus is on how to return to the table to further discuss these vital components, many of which are intertwined.

“We cannot agree to preconditions to return to bargaining – but we remain committed to bargaining in good faith to address the ILA’s demands and USMX’s concerns.”

The ILA, meanwhile, failed to offer the opportunity to restart talks, instead focusing on possible threats to union leader Harold Daggett’s life.

Noting his near-60 year experience on the waterfront as well as his time in Vietnam, the ILA said yesterday that Mr Daggett “understands real threats and the courage it takes” – but added: “The ILA leader could not imagine the hate and threats of violence against him and other top ILA leaders as attempts to end the current two-day strike, helping his ILA membership navigate the first coastwide work stoppage in almost half a century.

“He is sickened by these attempts.”

The statement primarily seems to concern an article in the New York Post, which he claimed had published Mr Daggett’s address, along with details of his career. It outlined how in 2005, the Justice Department had accused him of being an associate of the Genovese organised crime family and charged him with racketeering. He was acquitted.

The ILA said: “The ILA leader promised that, as serious as these personal threats and ugly smear campaign are to him, his family and ILA officers, he will not let them discourage him or weaken the ILA’s goal of negotiating the best master contract for his ILA rank and file members.”

One estimate from JP Morgan notes that the strike will cost the US economy between $3.8bn and $4.5bn per day – meaning it could already have amounted to some $12bn. And one day of strike is reckoned to lead to one week of disruption, so shippers, forwarders and carriers are already likely to face challenges throughout most of this month.

The strike continues, with no end in sight.