News / ILA doubles down on strike threat as shippers brace for port chaos

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Bombastic ILA leader Harold Daggett doubled down on his uncompromising stance at the weekend, increasing the likelihood of a US east and Gulf coast port strike.

In a letter to union members, Mr Daggett, president, and son Dennis, EVP, dismissed last week’s USMX press release as “nothing more than propaganda”.

The Daggetts claimed that inflation had cut sharply into wages, while USMX’s “corporate greed has made them delusional”.

USMX has pledged to retain the existing contract language on automation, which states that “there will be no fully automated terminals and no implementation of semi-automated equipment or technology/automation without agreement by both parties”.

But the Daggetts demanded: “We don’t want any form of semi-automation or full automation.” They added that the USMX members should have agreed with unions before investing in new equipment; that existing healthcare provisions are inadequate; that putting cameras in workstations is not a question of safety, but one of control; and decried the “constant battle over pensions”.

The letter concluded: “As frustrated as we are with our employers, it’s almost comical that they believe our members would fall for this nonsense. We are a rank-and-file-first administration, and we are taking on this fight for you and your families!

“Stay strong, stay united, and we will prevail!”

The letter was met with disappointment across industry.

Stephanie Loomis, head of ocean freight, Americas, for Rhenus, noted on social media: “All the stars are unfortunately lining up in the direction of a strike along the east and Gulf coasts.

“With the two sides still not talking and the ILA in complete agreement on striking on 1 October, it seems likely that a historic strike not seen since 1977 is in our collective future.”

Ms Loomis added that the proposed wage increase, of some 78%, was so high that the carriers would “have no option but to decline”. She also noted that the ILA’s stance on automation looked like a “roll back” on what was agreed in the last contract.

Politics – both in the ILA and the White House – will be key to this issue. Ms Loomis said: “It’s rumoured that USMX has an offer on the table similar to the 32% wage increase and $2bn bonus shared by union members approved by the ILWU on the west coast.

“With all the blustering and rabble-rousing by ILA president Daggett, it is clear he has to bring home a record deal for the union,” – perhaps his pre-retirement legacy.

“This not only plays into what seems with each passing day as an inevitability, but that this strike might be a long one,” concluded Ms Loomis.

Meanwhile, shippers have started to look to the White House for action to prevent a strike, but acknowledge that proximity to the US election has complicated matters.

The Retail Industry Leaders Association said last week: “The Biden administration has shown its willingness to be active in labour negotiations, as they did to avoid a rail strike in 2022.

“However, ILA leadership has already stated that it doesn’t want the government’s help, preferring to negotiate independently. This stance, coupled with the upcoming US presidential election, complicates the likelihood and timing of any government intervention.”

The only tool at the president’s disposal is the Taft-Hartley Act, under which, if it is determined that a port strike could endanger national health or safety, the US president can request a court order for an 80-day cooling off period.

However, RILA noted: “Any decision to invoke Taft-Hartley would likely weigh the potential political ramifications, particularly given the proximity of the election. Both the Harris and Trump campaigns are focusing on securing union votes, which will likely influence the outcome.

“A strike by port workers would have immediate and far-reaching consequences … each day of work stoppage would require five days to clear the resulting backlog—at a critical point of peak shipping season and coinciding with the arrival of increased volumes preceding China’s Golden Week holiday.

“The stakes could not be higher.”