Increasing Threat Of Labour Issues May Impact Ocean Freight

June 19, 2024

 

There is an increasing threat of labour strikes in North America and Europe that is being seen as a potential hurdle for ocean freight services during the coming weeks.

We have already highlighted the threat of an upcoming rail strike in Canada in a recent post, and a rail strike would impact the significant amount of traffic that moves to and from Canada and the Northern US by ocean freight.

As things currently stand that threat of a strike has increased. The Canada Industrial Relations Board (CIRB) have now taken submissions from major unions that represent over 9,000 workers, and are due to make a decision soon on whether a strike will be allowed to go ahead. 

Problems are also brewing on the US East Coast, where the International Longshoremen Association (ILA), which represents 85,000 port workers, is currently facing-off with port employers over a new labour contract and has suspended negotiations.

Negotiations have currently broken down due to a dispute over automation, but the union is mainly campaigning for substantial wage increases for its members. A strike could paralyse operations for 36 ports on the East and Gulf Coasts, between Maine and Texas.

In Germany, labour unions have threatened a series of port strikes at the country’s key ports, including Bremerhaven, Hamburg, Bremen and Emden, after talks with the Central Association of German Seaport Operators ended without success.

A warning strike has already disrupted activities in German ports on Monday as negotiations continue this week over port workers hourly rates.

Meanwhile, French unions have recently engaged in several one-day strikes and four-hour work stoppages in protest over the government’s pension reforms. However, upcoming strikes for 21st and 25th June have now been postponed until September following President Macron’s surprise call for a snap election.

The team at Killick Martin are monitoring developments closely.

 

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