East Coast Dockworkers Potential Strike – Update #5

As of this writing, the anticipated potential strike is set to be effective at 12:01AM this evening.  The following message was posted to the News section of the ILA website, which represents the Longshoremen along the US East Coast from Maine to Texas.

NORTH BERGEN, NJ – (September 30, 2024) The International Longshoremen’s Association (ILA) reports that United States Maritime Alliance (USMX) continues to block the path toward a settlement on a new Master Contract by refusing ILA’s demands for a fair and decent contract and seems intent on causing a strike at all ports from Maine to Texas beginning in almost 12 hours.

“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject”, the ILA said. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates.  Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.”

“In addition, the shippers are gouging their customers that result in increased costs to American consumers. They are now charging $30,000 for a full container, a whopping increase from $6,000 per container just a few weeks ago.  In just a short time, they went from 6K, to 18K, then 24K and now $30,000. It’s unheard of and they are doubling their $30,000 fee stuffing the same container from multiple shippers. They are killing the customers.”

The ILA will continue to update the media as information becomes available. The ILA will not engage in one-on-one interviews today, Monday, September 30, 2024.

 

We, as Reilly International, are not aware of the kind of numbers being reported in this news post by the ILA.

On the opposite side of the table is the USMX, which states that the US Ports do not operate efficiently.  There is a study which is widely recognized as accurate which measures efficiency.  The highest on that list is are the ports in North Carolina, but even they rank higher than 50 on the list of worldwide ports for efficiency.

The USMX are reportedly offering a 30% wage increase, which would be similar to the West Coast Dockworkers outcome of their contract negotiations from last year.  The reported demand from the ILA is a 78% wage increase over the six-year contract.  Plain and simple math tells us the two sides are far apart.  Wages, and port automation are reportedly the key issues which are not resolved.

As we have communicated previously, negotiations are not taking place as far as we are aware.  What has been reported is the White House is engaged with the USMX.  It has been communicated by our industry association that there is a lot of pressure to get this solved by various members of congress.

This is all the information we have as of this writing.

September 30, 2024

Share This Story, Choose Your Platform!