News / Atlantic and Gulf coast US ports close as ILA rejects last-minute offer

Photo: ILA

01/10/2024

Some 36 major ports on the US east and Gulf coasts have now shuttered, despite a last-minute near-50% wage increase offer from employers’ association USMX.

In a statement the USMX said: “In the last 24 hours, the USMX and ILA have traded counter offers related to wages. The USMX increased our offer and has also requested an extension of the current master contract, now that both sides have moved off their previous positions.

“We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement.

“Our offer would increase wages by nearly 50%, triple employer contributions to employee retirement plans, strengthen our healthcare options, and retain the current language around automation and semi-automation.”

However, the intransigent ILA, wielded by Harold Daggett, who observers believe wants to cement his union legacy with a record deal, declined. All the ports on the Atlantic and Gulf coasts were closed at one minute past midnight. The ILA said tens of thousands of ILA members had begun setting up picket lines.

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The ILA said: “The ILA rejected USMX final proposal made on Monday, setting the stage for the first ILA coast wide strike in almost 50 years. The USMX last offer fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.”

Mr Daggett added: “USMX brought on this strike when they decided to hold firm to foreign-owned ocean carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labour that brings them their wealth.

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“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve.”

Labelling the shipping lines “greedy” and “only interested in protecting their fat revenues”, Mr Daggett concluded: “USMX owns this strike now. They now must meet our demands for this strike to end.”

Teamsters representing the west coast ports said they stood in solidarity with the ILA.

“The US government should stay the f**k out of this fight… Don’t forget – Teamsters do not cross picket lines. The Teamsters Union is 100% committed to standing with our longshoremen brothers and sisters until they win the contract they deserve.”

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Affected ports include Boston, New York/New Jersey, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, Port Everglades, New Orleans, Mobile and Houston, among almost two dozen other ports on the East Coast and Gulf of the US.

Military cargo will still be moved and passenger cruise ships will also be serviced.

Scan Global Logistics reported that most carriers and terminals have stopped demurrage and detention accrual – but that relief does not extend to cargo already accumulating charges. It added that alternative CFS locations for retuning empties are under review by carriers.

Estimates suggest a one-week strike could cost the US economy nearly $4bn, with delays and disruption through to mid-November.

You can hear the whole strike podcast here.