Cover Story do not , due to the high cost of implementation . But carriers do not want to forestall the possibility because if they give in now , they may never get back the right to automate at a later date .
“ It is critical that terminals have the capability to densify as American consumer demand and exports continue to rise ,” the USMX confidentially told the Biden administration , according to documents shared with the Journal of Commerce . “ There is not enough land or berth capacity in US ports to handle future trade growth without implementing new technology .”
“ It is critical that terminals have the capability to densify .”
Finally , the USMX appears to be in no mood to concede on key points such as automation after what was described as a demoralizing experience during the strike . Employers were prevented at every turn from returning to direct bargaining with the union — a practice that was standard procedure for decades in negotiating prior contracts — and ultimately saw their unified position on wages and the need to negotiate in person disintegrate on orders from some carrier headquarters .
White House pressure
The carrier and marine terminal operator members of the USMX displayed unity in holding firm on their approximately 50 % wage increase offer despite intense pressure in multiple virtual and in-person meetings with the Biden administration before and during the strike . They were then overruled on Oct . 3 by carrier head offices following a group CEO-only virtual meeting held early that morning , according to one source .
Pressure from the White House manifested itself in what management sources said was a two-week , gradually intensifying campaign by administration officials , including Transportation Secretary Pete Buttigieg , Acting Labor Secretary Julie Su and White House Chief of Staff Jeff Zients .
What started as what executives described as a polite phone call from Su to the USMX a few weeks before the strike led to a series of more senior-level meetings with industry officials and ultimately to a group CEO-only conference call , after which the tentative deal was swiftly concluded . It included USMX senior staff and board members being summoned to Washington on short notice , as well as separate conference calls with US-based carrier CEOs and marine terminal operator CEOs .
Throughout those meetings , according to sources , Biden administration officials consistently voiced similar messages to that of the union : basically , that because carriers earned record profits during the COVID-19 pandemic , it is their duty pay up to avoid further disruption at the ports .
Ever-present , sources said , was the upcoming presidential election and what appeared to be a determination by the administration to avoid a politically damaging distraction in the final weeks of the campaign , which is what they feared from a protracted strike .
Now , USMX will have to regroup , as negotiations with the union will likely resume in the coming weeks after what had been a cordial , even cooperative working relationship that led to several contracts and labor peace since 1977 shattered over the course of the last several months , culminating in the strike .
email : peter . tirschwell @ spglobal . com
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14 Journal of Commerce | October 21 , 2024 www . joc . com