If the stakes are high enough, 100 days can feel like the blink of an eye.

On October 4, a historic three-day strike along the entire East Coast and Gulf ports of the United States ended with a collective sigh of relief by involved parties and just about every industry. The strike, while massive, was resolved in time for the supply chain to recover. It was celebrated as an example of the powers of collective bargaining.

Understandably overlooked by many casual onlookers was one big caveat: It was only a 100-day tentative deal, with the goal of hammering out a six-year deal within that time.

  •  While crucial agreements were made regarding wages, the short deal was reportedly a result of tabled disagreements over automation.
  • With the 100-day deal expiring January 15, the two sides are reportedly no closer to a compromise on the issue.

While the October strike ending somewhat quickly was a relief, a multi-day work stoppage of that magnitude every three months is by no means sustainable for the supply chain – promotional products or otherwise – and anything longer could be catastrophic.

Whether it comes to that is pure speculation, but as days slip off the calendar – and the issue at hand being more inherently subjective in definition – some promo suppliers are beginning to consider all options.  

“Based on early accounts that the issue for the negotiation breakdown is that surrounding automation, which in many ways can be more difficult to navigate than the previous wage discussion, we have taken extra precautions to ensure the integrity of our inventory levels if another strike does indeed take place in January,” says Paul Hirsch, MAS, CEO of HIRSCH, PPAI 100’s No. 20 supplier.

Based on early accounts that the issue for the negotiation breakdown is that surrounding automation, which in many ways can be more difficult to navigate than the previous wage discussion, we have taken extra precautions to ensure the integrity of our inventory levels…”

Paul Hirsch

CEO, HIRSCH

Automation Proving Thorny For Both Sides

As Hirsch alluded to, the issue of automation is more ambiguous in nature than wages. It cannot quite as easily be resolved by both sides going back and forth with proposed numbers.

  • Negotiations reportedly stalled in November when the United States Maritime Alliance (USMX) presented a contract with intention to implement semi-automation.
  • The International Longshoremen’s Association (ILA) called this a “direct contradiction” of the USMX’s previous assurance that full and semi-automation would not be on the table.

It requires only a little bit of foresight to see the logic behind the arguments of both sides.

  • The ILA sees semi-automation as a Trojan horse to cut jobs down the line. The union seems willing to showcase that the USMX needs human workers now more than it needs automation, seeing this as a “pivotal” time in labor history.
  • On the on the other hand, the USMX does not want to feel handcuffed from adopting new technology in order to remain current with an evolving world.
  • The ILA has stated that it is in approval of automation that improves safety and increases efficiency with the caveat that a human is tasked with its operations.

Promo Perspective

This remains an “if” scenario for the moment. The worst-case scenario would make it nearly impossible for most branded merchandise companies to prevent feeling the consequences of another strike along the entire East Coast as well as the Gulf ports.

John Janson, vice president of global logistics at SanMar – PPAI 100’s No. 1 supplier, which accounted for nearly $4 billion in revenue in 2023 – told PPAI Media in late November that the company has been closely monitoring the situation since the 100-day tentative deal began.

At this point while the potential [for a work stoppage] does exist, I do not see it as likely.”

John Janson

VP of Global Logistics, SanMar

“At this point while the potential [for a work stoppage] does exist, I do not see it as likely,” Janson says.

  • The deal is set to expire five days before a new administration is set to take over the White House.
  • If the USMX believes that President-elect Donald Trump would step in and end the strike on his first day in office as a show of power, that would still require five days of work stoppage over a single issue.

“While the current administration deserves credit for working behind the scenes to bring the work stoppage to a close, I think the new administration will be a much more involved participant,” Janson says.

“We continue to keep close contacts with executives with our carriers and within the ports, and at this point neither side is preparing for a work stoppage.”