Major U.S. Ports May Shut Down As 45,000 Workers Threaten To Walk Off For Higher Wages

A possible strike at ten of the busiest ports in North America can disrupt operations as 45,000 workers plan to walk off the job unless their pay demands are met.

The International Longshoremen’s Association (ILA) criticized the United States Maritime Alliance (USMX) for making “insulting offers” in response to the union’s requests for higher wages and automation commitments.

If no agreement is reached, this will be the first strike of its kind since 1977, affecting 36 ports along the East and Gulf coasts of the United States. Analysts at JP Morgan estimate that a strike might cost the US economy $5 billion a day.

Sea-Intelligence, a shipping advisory company, predicts that the backlog from just one day of strikes will take four to six days to clear.

The union’s disagreement with the United States Maritime Alliance is based on charges that the company violated its existing contract by implementing automation at ports, including Mobile, Alabama.

According to the ILA, an auto-gate system designed to automate truck processing is replacing union workers. The ILA is demanding salary increases, healthcare improvements, and the removal of automated and semi-automated terminals at ports.

Over the years, labour groups representing US port workers have raised concerns about automation, saying that it leads to job losses while shipping companies benefit from huge profits.

The ILA’s international president and main negotiator, Harold J. Daggett, stressed the need for fair wages and added that USMX knows the minimum salary hike needed for union members to sign a new contract.

Daggett discussed the challenges of port workers during the COVID-19 pandemic, during which several lost their lives while shipping companies made huge profits. He said that USMX is to blame for a coast-wide strike.

The union has responded to USMX’s claims about wage demands, stating that a planned $5-an-hour rise for each year of the six-year contract would only result in a 9.98% annual increase.

Dennis Daggett, executive vice president of the ILA, said international support is possible if workers decide to strike, stating that it would be “the biggest display of international worker solidarity.”

In August 2023, port workers on the West Coast approved a six-year agreement that covered 22,000 workers at 29 ports and provided a 32% wage increase retroactive to July 2022.

A representative for the USMX shared the most recent updates on negotiations, stating their willingness to use federal mediation.

However, they stated that attempts to engage with the ILA and resume negotiations have been unsuccessful, saying, “Both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time.”

Reference: The Guardian, Economic Times

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