Wage Demands Create Stalemate as Longshore Workers’ Strike Persists
The United States Maritime Alliance, representing port employers, expressed their willingness to resume negotiations with the International Longshoremen’s Association (ILA) late Wednesday, though they will not accept any preconditions set by the union.
The strike, which began on October 1, has resulted in the shutdown of container handling and roll-on/roll-off services at ports from Texas to Maine, impacting up to 45,000 ILA members. Following President Joe Biden’s endorsement of the union’s position and urging employers to present a fair contract offer, ILA President Harold Daggett reiterated the union’s steadfast demand for a $5 per hour wage increase. In contrast, employers have offered approximately $3, according to sources familiar with the negotiations.
“USMX’s primary objective remains to finalize a new Master Contract that addresses all key issues requiring negotiation,” the employers stated on the USMX website. “Reaching an agreement necessitates good faith negotiations — we cannot agree to preconditions for returning to the bargaining table. However, we are committed to addressing both the ILA’s demands and USMX’s concerns.”
Marine terminals and container lines indicated on Monday that their wage offer, based on the ILA’s top hourly pay rate of $39, amounts to a 50% increase over the six-year duration of the coastwise master contract. However, the ILA dismissed this offer as insufficient, acknowledging that many of its members earn only $20 an hour, particularly in states like New Jersey where the minimum wage is $15. The previous master contract, established in 2018, set base pay at $20 for newly hired employees, while experienced workers can earn up to $39. The union is aiming for more than a $5 per hour pay raise annually throughout the contract.
The ILA emphasized that employees must work for six years to qualify for the top wage tier. They also highlighted that two-thirds of their members remain perpetually on call and lack guaranteed employment when no ships are operational, which makes them vulnerable during downturns. The current benefit qualification relies solely on hours worked in the previous year, leaving many workers without financial security. Furthermore, the union criticized the progression system that prevents dedicated members from advancing quicker to higher wages, necessitating a full six-year tenure.
The ILA asserted that they were prepared to negotiate a new contract in 2022, calling out employers for delaying negotiations until just before a strike. The last offer the union received was in February 2023. They claim that inflation has eroded wage increases from the previous contract and reiterated that international shipping lines are withholding record profits from union employees.
Additionally, the ILA remains opposed to any form of automation that could replace jobs or traditional work roles, emphasizing that preserving jobs is non-negotiable.
The USMX has acknowledged their agreement with the union concerning automation issues. Moreover, the union seeks their entitled share of container royalties as stipulated in the master contract, which are intended as wage supplements for members rather than to be distributed to employers. The ILA is demanding full access to these container royalty funds along with addressing other jurisdictional claims to secure what they believe is rightfully owed to their members.
