Here we go again.
Another potential supply chain crisis looms as the International Longshoremen’s Association (ILA) and U.S. Maritime Alliance (USMX) continue butting heads over wages, benefits, and automation. As of now, workers at 14 Port Authorities from Maine to Texas are ready to walk off their jobs as early as Tuesday, October 1, amid stalled talks.
The threat of a shipping disruption has toy and game manufacturers, distributors, and their retail partners nervous as the industry heads into the holiday season. Following the pandemic-fueled global shipping crisis, the last thing the industry needs is another dramatic upheaval in its business.
The current deal between the ILA and USMX expires on September 30.
Last week, The Toy Association joined more than 150 trade organizations and related businesses in firing off a letter to the White House urging the Biden administration to intervene and urge both parties to sign a new agreement prior to a strike.
One of the most critical areas of concern should work stoppage occur in two weeks is that ports on the East and Gulf Coasts do not plan on diverting cargo ships back to their original locations, which means ships could potentially remain idle in the Atlantic Ocean for an indefinite period — further exacerbating supply chain disruptions and delays.”
Yesterday, Game Manufacturers Association (GAMA) Executive Director John Stacy attended a briefing with 38 trade association leaders and the USMX to discuss the looming strike. According to an email sent to GAMA members last night, the ILA was invited to the meeting but declined to participate.
GAMA says that the associations were informed that the Biden administration did contact both sides to nudge them in the direction of successful talks while ruling out the possibility of invoking the Taft-Hartley Act, which would prohibit an ILA strike by forcing workers to remain at their posts throughout negotiations.
“We’ve never invoked Taft-Hartley to break a strike and are not considering doing so now,” a Biden administration official told Reuters last week.
While the Taft-Hartley Act hasn’t been used, government intervention remains a sore spot for union leaders, with the International Brotherhood of Teamsters publicly declining to endorse former President Donald J. Trump or Vice President Kamala Harris in this election cycle. In a statement, the Teamsters noted they are “at the mercy of government intervention that often prevents work stoppages,” citing the Biden administration’s involvement in a 2022 rail dispute.
“Unfortunately, neither major candidate was able to make serious commitments to our union to ensure the interests of working people are always put before big business,” said Teamsters General President Sean M. O’Brien. “We sought commitments from both Trump and Harris not to interfere in critical union campaigns or core Teamsters industries — and to honor our members’ right to strike — but were unable to secure those pledges.”
In the meantime, GAMA issued a PDF including government contacts and talking points for any member of the toy and game industries looking to make their voice heard prior to next week’s likely strike. View the document here.
The lead-up to this year’s Presidential election is serving up echoes of a few years ago, with talk of tariffs, inflation, and rising freight costs grabbing headlines once more. According to the National Retail Federation (NRF), the 11-day strike on West Coast ports in 2022 may have cost the U.S. economy $1 billion a day while creating a six-month jam-up.
The Toy Book will continue monitoring the situation at the ports in the days ahead.
