The International Longshoremen’s Association (ILA), representing more than 85,000 dockworkers on the East and Gulf Coasts of the United States, faces a contract expiration Sept. 30. However, negotiations with the United States Maritime Alliance Ltd. (USMX) show signs of breaking down, making a strike appear increasingly likely, threatening to disrupt nearly half of the nation's ocean trade.
In fact, the leaders of ILA urged USMX to “get with the times,” in a message to their members, charging that “USMX’s corporate greed has made them delusional – profits over people.”
ILA president Harold Daggett and ILA EV Dennis Daggett co-signed a message to the ILA’s 85,000 members on Sept. 7 providing a stark message that the two sides were far apart on many issues.
“Their interpretation of ‘leading wages’ is polar opposite to ours,” the ILA leaders said. “Inflation has completely eaten into any raises and wages. Everything has become more expensive, even compared to six years ago. Our members are struggling to pay their mortgages, rent, car payments, groceries, utility bills, taxes, and in some cases, their children’s education. USMX’s corporate greed has made them delusional – profits over people. They have taken advantage of a low entry wage and a tiered progression system for thirty years. We outright reject their position on the new entry wage.”
In response, USMX says there has been no further progress on master contract negotiations, and that “we remain committed to the bargaining process and need the ILA to return to the table. While there are fewer than three weeks remaining until the expiration of our current agreement – if the ILA is willing to meet – it is still possible to agree to terms on a new master contract. We need to sit down and negotiate a new agreement that avoids an unnecessary and costly strike that will be detrimental to both sides.”
What does this all mean for the future of supply chain, especially at a time when the industry heads into peak holiday shipping season?
In a coalition letter to President Biden, submitted by the National Retail Federation and signed by 177 trade associations and organizations, calls on the administration to engage in the ILA/USMX talks in hopes of reaching a resolution sooner than later.
"On behalf of the undersigned organizations representing manufacturers, farmers and agribusinesses, wholesalers, retailers, restaurants, manufacturers, importers, exporters, distributors, transportation and logistics providers, and other supply chain stakeholders, we are writing to you again expressing significant concern about the state of negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to help them return to the bargaining table to restart stalled negotiations. This labor contract, which covers all maritime container ports along the East and Gulf coasts, is set to expire on September 30, 2024. The ILA has repeatedly threatened a coastwide strike if a new agreement is not reached by October 1. As a follow-up to our June 25 letter, we call upon the administration to immediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity if a new contract is not reached by the expiration date."
