Washington, D.C. (October 4, 2024): Following an October 2 letter to President Biden, signed by SFIA and 300 organizations requesting the Administration engage in the East Coast Port labor contract talks, the International Longshoreman’s Association (ILA) and the U.S. Maritime Alliance (USMX) agreed to a 62 percent wage increase for dockworkers and suspended the strike on October 3. The ports will need time to get back up to speed as they deal with the backlog from the strike, but supply chains are safe now.
The strike ‘suspension’ expires on January 15, providing a temporary reprieve during the Holiday season. The two sides will continue to negotiate on outstanding issues including benefits, sharing container royalties, and automation at the ports. Automation at the ports is likely to be the most contentious issue as the ILA seeks to protect union jobs threatened by new technology. SFIA will continue to press for resolution of the outstanding issues prior to January 15 to avoid any disruption in U.S. supply chains.
The ILA was seeking a 77 percent pay increase and USMX was offering a 50 percent increase. Secretary of Labor Su, Secretary of Transportation Buttigieg, and National Economic Council Director Brainard worked with the parties to come to an agreement to end the strike. SFIA commends the Administration for engaging the ILA and USMX to find common ground to keep the ports open and U.S. supply chains operating at full capacity.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (October 3, 2024): On October 1, the International Longshoreman’s Association (ILA), representing 45,000 workers at East and Gulf Coast Ports walked off the job due to contact demands not being met. The Ports represented by U.S. Maritime Alliance (USMX) have offered a 50 percent pay raise and increased benefits. The ILA is holding out for a 77 percent pay raise, a guarantee not to move to any form of automation that threatens union jobs, and a share of container royalties. With roughly half of U.S. commerce flowing through East and Gulf Coast Ports, a prolonged strike will disrupt supply chains during the critical holiday season.
U.S. supply chains are seriously threatened if ports are not operating at full capacity to keep goods flowing through the 14 East and Gulf Coast ports (Boston, New York/New Jersey, Philadelphia, Wilmington (NC), Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston). With President Biden indicating he is not ready to invoke the Taft-Hartley Act to force port workers to return to work, SFIA joined 180 business interests across America on October 2 in a letter to President Biden requesting he intervene in the labor dispute. The SFIA/U.S. business letter follows a request from Congressional Republicans asking the President to intervene and prevent a work stoppage at the ports. SFIA successfully engaged the Biden Administration for help on the West Coast Port Strike, the Rail Strike, and the UPS Strike to keep supply chains operating at full capacity.
The President has directed the ILA and USMX to return to the negotiating table and USMX met with Administration officials, but the ILA has declined to engage without a new contract offer. USMX has filed a charge with the National Labor Relations Board alleging the ILA is not negotiating in good faith. With U.S. elections a month away, there is additional political pressure to resolve the strike and not have supply chain disruptions leading up to Election Day.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (Sept 17, 2024): On September 17, SFIA joined other business interests on a letter to President Biden asking the Administration to work with the International Longshoreman’s Association (ILA) and the U.S. Maritime Alliance (USMX) on resuming stalled contract negotiations as the September 30 deadline approaches. SFIA seeks to avoid any unnecessary and preventable supply chain disruptions created by a labor strike or slowdown at the East Coast Ports, which account for 43 percent of U.S. imports.
The Administration has previously helped with stalled labor talks for the West Coast Ports, Railroads, and UPS. SFIA appreciates the Administration’s previous engagement to keep supply chains operating at full capacity and implores them to do the same for East Coast Ports as the strike rhetoric ramps up. The ILA recently convened its leadership, who approved a strike if no contract agreement is reached, and launched preparations for a strike. The ILA is seeking a 77 percent pay raise; the West Coast Port Workers received a 32 percent raise in their 2023 contract and the sides remain far apart. Automation at ports is another sticking point, with the ILA wanting guarantees that union workers will not lose jobs to automation.
The USMX has stated it is prepared to return to the negotiating table, but the ILA has declined to return until better contract terms are offered. The letter seeks the Administration’s help in forcing the parties to the negotiating table to hammer out a deal and keep ports operating during contract talks.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (Sept 6, 2024): Almost 300 unions representing port workers from Maine to Texas met yesterday to discuss current labor contract negotiations and reaffirm their demands. The International Longshoreman’s Association (ILA) is seeking an 80 percent increase in wages and concessions on the use of automation at the ports. At the conclusion of the two-day meetings, ILA’s Wage Scale Delegates from the 13 port areas in negotiations with the United States Maritime Alliance (USMX), voted unanimously to support a strike beginning October 1.
After sharing an update on Contract negotiations, ILA President Harold Dagget called for the October 1 Strike, saying “…if we are without a Master Contract to replace the current one, we must be prepared if we have to hit the streets at 12:01 AM on Tuesday, October 1st”. ILA EVP Dennis Daggett laid out the union’s Stike Mobilization plan for ports to help unions plan for a potential strike.
The USMX and ILA have not met to discuss the new contract in more than a month and both sides filed a “Notice to Mediation Agencies with the Federal Mediation and Conciliation Service (FCMS)” to alert them of the dispute between the parties. USMX remains committed to reaching an agreement with the ILA unions and hopes to re-open dialogue with the dockworkers to discuss contract demands.
SFIA is working with business interests to engage the Administration in the dispute to avoid a strike and unnecessary disruptions in supply chains at the end of the month.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (Aug 14, 2024): To keep steel and aluminum from China, and other countries under sanctions, out of the U.S. market, President Biden issued dual proclamations to discourage the transshipment of goods with steel and aluminum from China, Russia, Belarus, and Iran from reaching the U.S. market via Mexico. The new tariff rates went into effect on July 10 and imports already in free-trade zones are not exempt from the new tariffs.
Under the new proclamations, a 25 percent tariff would be collected on any steel or steel derivative products imported from Mexico under Section 232 tariffs if the steel is not poured or melted in a USMCA country (U.S., Mexico, or Canada). In addition, products containing aluminum or aluminum derivatives are hit with new Section 232 tariffs of approximately 10 percent if the primary smelt, secondary smelt, or most recent cast was performed in China, Belarus, or Iran. A 200 percent tariff would be applied to aluminum imports if smelts and recasts were performed in Russia.
Steel, aluminum, and derivative products not subject to the new tariffs will retain their exempt status with stricter reporting requirements. Importers must include a ‘Certificate of Analysis’ to receive a tariff exemption for steel and aluminum. Customs & Border Protection (CBP) now requires additional information on the source of smelting and pouring of steel or casting of aluminum to verify tariff-exempt status.
SFIA supports U.S. sanctions on steel and aluminum from bad actor countries but prefers a non-tariff solution to close the Mexico loophole.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (Aug 13, 2024): With the September 30 deadline for a new Contract looming, the International Longshoreman’s Association (ILA) is holding firm in negotiations for a new contract for dockworkers from Maine to Texas. The ILA rejected the latest offer from the U.S. Maritime Alliance (USMX) that included a pay raise 32 percent higher than West Coast dockworkers received last year. The ILA has indicated it is seeking a nearly 80 percent wage increase for dockworkers in the new contract.
In addition, the USMX contract includes a boost in starting salaries, increases in employer retirement contributions, and first-rate healthcare coverage. The ILA has cited an “autogate” at the Port of Mobile as “automation” threatening union jobs and the ILA was never consulted. With ‘Automation’ a major sticking point in contract talks, the USMX proposal requires ports to consult with the ILA on the introduction of new technology that impacts union jobs and hours.
The USMX remains committed to negotiating a Master Contract for all East and Gulf Coast Ports before the current contract expires on September 30th. ILA says the two sides“are very far apart, particularly on economic issues.” ILA President Harold Dagget has consistently said dockworkers will not work past September 30 without a new contract, setting up a potential showdown that will disrupt supply chains. With six weeks to finalize a deal, pressure is on to find common ground or we could see the first East Coast dockworker strike in almost 50 years.
A recent SFIA webinar on Supply Chains included a discussion on East Coast Ports and shipping options. Members can access the webinar recording and slides by clicking here.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (July 19, 2024): On a recent SFIA Webinar, Navigating PFAS Regulations: Addressing Challenges and Consumer Concerns, legal and compliance experts Anne Marie Ellis, Shareholder, CA Chair Product Liability, Buchalter; Bailee Pelham, Associate, Buchalter; Sarahann Rackl, Ph.D., P.E, Principal Engineer, Exponent; and Sara Hearon, Ph.D., M.P.H., Senior Scientist, Exponent, shared the challenges presented by new PFAS regulations in the U.S. New York and California are leading the way on more expansive apparel PFAS content restrictions for products beginning in January of 2025, but Colorado, Connecticut, Maine, Maryland, Minnesota, and Vermont all have new PFAS restrictions going into effect in the next four years with other states are expected to follow suit.
One of the biggest concerns is claiming products to be “PFAS-free”. Companies need to exercise caution in marketing claims to avoid any investigations into compliance with the new laws. There have already been 75 filings under Proposition 65 for PFAS and similar chemical violations in California this year, and the new laws haven’t even gone into effect yet.
The PFAS webinar identified footwear and apparel as industry products with the greatest exposure, especially if they are waterproof, but PFAS compliance is not limited to footwear and apparel. Ski wax is a PFAS target in Colorado, Connecticut, Maine, and Minnesota. Retailers are looking at vendor agreements for ways to move liability to manufacturers. One issue of particular concern is false advertising claims, which are not typically covered by insurers in class action lawsuits.
The health threats related to PFAS continue to grow as does the list of “forever” chemicals subject to PFAS restrictions. Claiming products are “PFAS-free” requires proof of claim or companies can be subjected to additional scrutiny and fines. SFIA was pleased to present this timely webinar to help the industry understand the exposure and risks posed by PFAS, and the actions needed to comply with new laws. The PFAS Webinar, along with all SFIA webinars, was free to members. Members can access the webinar recording and slides by clicking here.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
An interview with Youth Sports Champion Congressman Chuck Fleischmann (R-TN)
Congress is full of people who support youth sports, but few step up to lead the charge on innovative efforts to advance youth sports policies like Congressman Chuck Fleischmann. The Congressman understands youth sports, as a lifelong athlete himself who still plays on the Congressional Baseball, Football, and Basketball teams. Mr. Fleischmann is a regular in the gym, a long-time advocate of the PHIT Act to lower family activity costs, and recently, he led the successful effort to secure funding for a Bureau of Economic Analysis (BEA) Study on the Economic Impact of Youth Sports. The BEA study will be a huge asset to the industry, layering the economic benefits of youth sports on top of the health and social benefits to advance youth sports policies.
SFIA recently sat down with Congressman Fleischmann to discuss youth sports, the benefits of participation, the barriers families face, and how participation in Congressional Sports has helped him build relationships on Capitol Hill and in DC.
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Q&A
Q: When did you start playing sports and how did your childhood sports experiences influence you?
A: Age five. Playing sports during my childhood taught me the importance of fair, strong competition.
Q: You came to Congress and immediately jumped into Congressional Sports, then dedicated yourself to improving your fitness. You are a model for healthy lifestyles. How has playing on the Congressional Baseball and Football teams helped you as a legislator? How has your commitment to fitness impacted your life?
A: As a Legislator, taking part in Congressional Sports, specifically playing every year in the Congressional Baseball Game and the Congressional Football Game, has allowed me to make strong friendships with Members in my own Conference, across the aisle, across the Capitol, and across multiple Administrations.
My commitment to fitness has allowed me, at almost 62, to live a healthy life, play healthy, and still be able to take part in competitive sports.
Q: What drives your passion for sports and commitment to ensuring America’s youth have the opportunity to play sports?
A: The love of all sports, but specifically, my love of the sport of baseball, and competition. America’s youth can learn early the values of healthy competition and avoid, if possible, negative lifestyle choices which would affect them in a harmful way as they grow older.
Q: What do you see as the biggest barriers and threats to youth sports participation? Biggest Benefits?
A: Barriers: Access and exposure, lack of resources.
Benefits: Creating relationships and friendships while enjoying the benefits of the sport(s) of their choosing.
Q: Thank you for your leadership in capturing the economic impact of youth sports. Why does the economic impact matter and how will knowing the economic side change the youth sports conversation in Washington?
A: Parents, friends, families, and communities will invest wisely in equipment, personnel, and facilities to promote youth sports. Tourism will also benefit.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (July 9, 2024): Youth sports is a sleeping giant in Washington, but that is about to change. SFIA applauds Congressman Chuck Fleischmann (R-TN) on securing language in the Commerce Department Appropriations for a comprehensive study on the economic impact of youth sports in America (page 16). Layering the economic data on top of the social and health benefits of youth sports will move policies through Congress.
Everyone in Congress supports active kids and youth sports for a variety of social and health reasons, yet many policies to address the cost and access barriers remain stalled. The pandemic disrupted youth sports like never before and the physical and mental health fallout is well documented. The benefits of team sports and activity for children have never been more evident; Congress needs to help families get kids in the game.
SFIA identified the Commerce Department’s Bureau of Economic Analysis (BEA) as the perfect government agency to collect data from the Departments of Education, Labor, Health & Human Services, and Interior on the total economic impact of youth sports in the U.S. SFIA is the gold-standard for industry research and this new government study on the economic impact of youth sports will be a valuable resource for the industry and complement SFIA’s ongoing research.
Any new government study needs funding and SFIA found the right champion in Congressman Fleischmann. The Congressman was SFIA’s top choice; an athlete, playing on the Congressional Baseball, Football, and Basketball teams, a regular in the House gym, and an Appropriations Subcommittee Chairman. The Congressman took on the challenge of funding the study with passion and commitment and delivered the language in the Commerce Appropriations bill to launch the study:
Youth Sports Economic Impact Study — The Committee directs the Secretary to report to the Committee, no later than 90 days after the enactment of this Act, on the feasibility of entering into a joint memorandum with the Secretary of Education, the Secretary of the Interior, the Secretary of Health and Human Services, and Secretary of Labor to assess the youth fitness and sports economy of the United States by identifying the total revenue generated from youth fitness and sports businesses and facilities on a national and State level; the total jobs created by youth fitness and sports businesses and facilities; and the total dollar value of the youth fitness and sports economy.
The study will be funded in 2025 with the first report released in 2026. A similar BEA study for Outdoor Recreation found a total economic output of $1.1 trillion in 2023 or 2.4 percent of U.S. GDP. SFIA believes the youth sports figures will be even bigger. Youth sports exist in every community in America and have more participants through school, community, and club sports programs than outdoor recreation.
Active Americans are healthier and spend less on preventable medical conditions; capturing the economic impact of activity in America will boost federal investments in youth sports and adult fitness. SFIA thanks Congressman Fleischmann for his vision and leadership.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (June 18, 2024): “The threat of a coast-wide strike on October 1, 2024, is becoming more likely as U.S. Maritime Alliance (USMX) and its member companies continue to drag their feet,” warned International Longshoremen’s Association (ILA) President Harold Daggett
This ominous message from the ILA was included in an ILA Press Release last week highlighting the record profits of shipping companies and union concerns over automation as they negotiate a new Master Contract for ports from Maine to Texas that seeks greater distribution of shipping revenues to dock workers.
Technological advances have led to increased efficiencies via automated tracking of cargo and increased use of technology to perform clerical tasks. Both advancements are good for shipping but a threat to Union jobs. In addition, Unions are upset that the tech support jobs created by automation are not union jobs and they should be since work is performed around the ports.
The ILA walked away from the negotiating table on June 10 over an automation issue at the Port of Mobile. Union leaders do not believe the USMX is negotiating in good faith as shippers and ports explore ways to circumvent the Union’s traditional roles, including using technological solutions to perform basic clerical tasks that eliminate Union jobs.
SFIA responded to this development with a letter to President Biden and key cabinet secretaries asking for the government to intervene to ensure fragile supply chains are not artificially disrupted by a labor strike at ports from Maine to Texas. The resiliency of supply chains has been tested recently by Red Sea hostilities, the Ukraine war, S. China Sea tensions, and the recent drought in the Panama Canal; an East Cost Port Labor strike as we move into the peak shipping season would present a huge challenge to supply chains and lead to diversion of cargo to West Coast ports.
The Unions point out that A.P. Moeller-Maersk had $82 billion in revenue in FY 2022, a 50 percent increase over FY 2021. Similarly, Mediterranean Shipping Company had revenues of $28.2 Billion, COSCO saw revenues jump from $51.67 billion in FY 21 to $63.2 billion in FY 2022 and APM Terminals saw a nine percent growth in revenues to $4.4 billion in FY 22. All these companies’ interests are represented by USMX on behalf of the ports.
The current ILA contract with East and Gulf Coast Ports expires on September 30th, five weeks from Election Day. Labor is driving a hard bargain, but East and Gulf Coast Port unions use a compensation formula that includes the volume of cargo moved through their port. A strike would have a direct impact on Union wages which will put pressure on Union leadership to reach a new labor agreement. If talks drag on and a strike looks more imminent, expect the Administration to step in to avoid a supply chain crisis so close to the Election but there are no guarantees with Unions playing hardball in sharing shipper and port finances.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected]