Strikes Threaten Supply Chains in the US, Canada, and Europe

With the labour contract negotiations for 45,000 dockworkers along the US East Coast cancelled by the International Longshoremen’s Association (ILA), industrial action is more likely, as it is on the Canadian railways, while German port workers have already commenced strike action.

The ILA halted discussions for a new six-year contract for ports along the US East and Gulf coasts after discovering that APM Terminals and Maersk Line are using an Auto Gate system at the Port of Mobile, Alabama, which processes trucks without ILA labour, violating the existing agreement according to the union.

Talks with the United States Maritime Alliance (USMX) over a new master contract, set to expire on 30th September, will not be resumed until the Auto Gate issue is resolved at Mobile (and potentially other ports).

The union highlighted past automation projects at Los Angeles and the introduction of semi-automated cranes in Virginia by Maersk, which resulted in fewer longshore jobs, and stressed that negotiating a new agreement with USMX is pointless while one of its major companies continues to violate the current agreement.

If no coast-wide contract is in place by the September expiration, the ILA may strike for the first time in nearly 50 years.

Canada
The threatened strike by Canada’s Customs and Immigration Union has been called off until further notice. However, meetings between the Teamsters union (TCRC) and Canadian National Railway (CN) have been abandoned, increasing the likelihood of industrial action. The anticipation of a rail strike in Canada has prompted additional contingency planning, including rerouting efforts through the Pacific Southwest.

The Canadian Industrial Relations Board (CIRB) decision on whether the Canadian rail service can be deemed essential is still pending. If the decision renders it not essential, a rail strike will take place across Canada’s network at 72 hours’ notice.

On the 15th June, a vote between 584 longshore foremen ILWU members, on the British Columbia Maritime Employers Association’s (BCMEA) final offer, which included a 19.2% wage increase, was rejected by some 99%. The union claimed that, subject to a ‘cooling off period’ and strike ballots, it was in a legal position to call a strike.

The CIRB commenced a hearing this week to address the dispute, with the next stage scheduled for the 6th August.

Europe
Port workers in Germany implemented a ‘warning’ strike which affected the ports of Hamburg, Bremerhaven, Bremen, Emden, and Brake, and the Verdi trade union has threatened more action if negotiations for a new collective labour agreement do not progress.

In France, trade unions had begun to carry out strike threats in protest of pension reform, threatening a month of chaos and disruption for major ports, including container hubs Le Havre and Marseille-Fos. However, President Macron’s decision to call a snap election had left the union with no government-level negotiators until a new administration is formed, leading them to postpone the strikes until September.

If you have concerns or questions regarding any of the issues highlighted here, we can provide insights, advice, and guidance. EMAIL Matt Fullard.