The United States Maritime Alliance (USMX) has refrained from commenting on the ongoing negotiations with the International Longshoremen's Association (ILA). The USMX has expressed concerns about the union's lack of good faith in negotiations, citing a lack of in-person meetings since June. On Monday, the USMX announced an increased offer of wage increases exceeding 50% over a proposed six-year contract.
ILA President Harold Daggett revealed that the union is pushing for a substantial pay raise, seeking a $5-an-hour increase annually over the six-year period. This would result in a significant 77% pay hike, with the top pay rising from $39 to $69 per hour.
The shipping industry experienced a surge in rates during and post-pandemic, attributed to supply chain disruptions and heightened demand. Analysts estimate industry profits surpassing $400 billion between 2020 and 2023, exceeding cumulative earnings since the inception of containerization in 1957.
Daggett emphasized the industry's substantial profits post-Covid, accusing companies of prioritizing profit over fair compensation for workers. He highlighted the potential shift towards fully automated terminals on the East Coast to maximize profits.
The ILA clarified that while face-to-face negotiations have not occurred, discussions with the USMX have continued. The union asserted that its demands are reasonable given the industry's profitability and warned that any potential strike would be attributed to management's reluctance to meet their demands.
Daggett commended the Biden administration's intervention in the negotiations, particularly acknowledging Acting Secretary of Labor Julie Su for her proactive efforts. He praised Su for advocating fair negotiations and criticized companies for their perceived lack of fairness in the bargaining process.
