The International Longshoremen’s Association (ILA), representing over 85,000 dockworkers across the East and Gulf Coasts of the United States, faces a critical contract expiration set for September 30. However, negotiations with the United States Maritime Alliance Ltd. (USMX) are reportedly deteriorating, increasing the likelihood of a strike that could disrupt nearly half of the nation’s ocean trade.
In fact, ILA leadership has urged USMX to “get with the times,” as conveyed in a recent communication to their members. They accuse USMX of prioritizing “profits over people” and being out of touch with the current economic climate.
ILA President Harold Daggett, along with ILA Executive Vice President Dennis Daggett, co-signed a message on September 7 to their 85,000 members, asserting that significant disparities remain between the two parties on numerous critical issues.
“Their interpretation of ‘leading wages’ is polar opposite to ours,” stated ILA leaders. “Inflation has completely eroded any wage increases. Everything has become more expensive compared to six years ago. Our members face challenges meeting their mortgage, rent, and essential expenses. USMX’s corporate greed has made them delusional – profits over people. For three decades, they have exploited a low entry wage and a tiered progression system. We outright reject their position on the new entry wage.”
In response, USMX has indicated that there is no additional progress regarding the master contract negotiations. They remain committed to the bargaining process and urge the ILA to return to the negotiation table. “With less than three weeks until our current agreement expires, it is possible to establish terms for a new master contract, provided the ILA is willing to engage in discussions. We aim to negotiate an agreement that avoids an unnecessary and costly strike, which would be detrimental to both parties,” they emphasized.
What do these developments mean for the future of the supply chain, particularly as the industry approaches the peak holiday shipping season?
A coalition letter addressed to President Biden, submitted by the National Retail Federation and endorsed by 177 trade associations and organizations, urges the Biden administration to facilitate discussions between the ILA and USMX to expedite a resolution.
“On behalf of the undersigned organizations representing manufacturers, farmers, agribusinesses, wholesalers, retailers, restaurants, importers, exporters, distributors, and transportation and logistics providers, we express significant concern over the stalled negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). This labor contract, encompassing all maritime container ports along the East and Gulf Coasts, is set to expire on September 30, 2024. The ILA has warned of a potential coastwide strike if a new agreement is not ratified by October 1. We reaffirm our call for the administration to facilitate a swift return to contract negotiations to ensure uninterrupted port operations and cargo fluidity prior to the expiration date.”
