PORT NEWARK, N.J. — Port employers said they have exchanged new contract offers with the International Longshoremen’s Association, just hours before a strike deadline takes effect that would shut down container handling at East Coast ports.
“In the last 24 hours, the United States Maritime Alliance and ILA have traded counter offers related to wages,” the employers said in a statement posted to their website. “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.”
The group of terminal operators and ocean container lines said their new offer would increase wages by nearly 50%, triple employer contributions to union retirement plans, strengthen health care options, and retain the current language around automation and semi-automation. No further details were disclosed.
The ILA earlier rejected the employers’ offer, but a source familiar with negotiations said that the union has lowered slightly its demand for a 77% wage increase over six years of the master contract, and that the USMX has increased their initial offer.
The first real bargaining progress in several months comes after representatives of the ILA and USMX, including its chief negotiator David Adam, met separately with Biden administration officals over the past week.
The ILA has yet to respond to the employers’ request to extend the current master contract, which expires at midnight Tuesday.
While it looked like any other busy Monday, there was an added sense of urgency at the Port of New York-New Jersey as shippers raced against a midnight strike deadline set by union workers that will shut down container and ro-ro services at ports throughout the East and Gulf Coasts.
As of noon, most dockside container cranes were idle while straddle carriers scurried to organize last-minute shipments. Truck traffic was heavy but orderly at Port Newark Container Terminal (PNCT), punctuated by frequent horn blasts from drivers showing support for members of the International Longshoremen’s Association.
The union said 25,000 container and ro-ro workers and a total of 45,000 union employees will walk off the job and set up pickets at 36 ports from Texas to Maine when the current master contract expires at midnight Tuesday. The ports collectively handle more than 56% of all U.S. containerized imports annually.
The walkout would be the first by the ILA since 1977.
On Monday container ships could be seen departing the country’s second-busiest port, and no stack trains were in the gateway’s main north-south yard. Police from the Port Authority of New York-New Jersey were present to direct traffic around road construction but otherwise were not out in force.
“I may be waiting here until evening to get in [to PNCT],” said one trucker who had pulled over to wait, “but it looks like any busy day here.”
While one ro-ro vessel remained in port, it was unclear when dozens of imported Maseratis parked in a vast storage lot would be shipped out by rail and truck. Fleets of container chassis were also stacked to the side until needed.
A chaplain who had visited three vessels on Monday said all aboard were focused on departing as soon as possible.
“The Ocean Carriers represented by USMX [United States Maritime Alliance] 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 in a statement posted to its website. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”
The union also accused ocean lines of gouging their customers, claiming container shipping rates have risen to $30,000 from $6,000 several weeks ago.
Negotiations on local contracts broke down in June after the ILA said terminal operators and ocean carriers represented by the USMX weren’t making a serious contract proposal. Talks are hung up on wages, benefits and the introduction of automation technology in port services.
Biden administration officials met with ILA leadership this past week and with USMX officials at the White House over the weekend. Transportation Secretary Pete Buttigieg, acting Labor Secretary Julie Su and White House economic adviser Lael Brainard were present at the latter meeting.
President Joe Biden earlier said he would not block a strike; the administration similarly said it has no plans to invoke the Taft-Hartley Act, which would order strikers back to work while contract negotiations resume.
The Port Authority in a message posted on its website said all container terminals will be closed until further notice beginning Tuesday. There will be no loading or discharge of containers to or from any vessels, trains and trucks, and no unloading of vehicles from ro-ro vessels. All terminal gates at APM Terminals, Maher, PNCT and Port Liberty Bayonne and Staten Island were expected to close by 5 p.m. Monday.
Bulk shipping including road salt, cement, Belgian block, scrap metal, edible oils, municipal waste and orange juice will continue, as will cruise operations.
This article was updated on Sept. 30.
Find more articles by Stuart Chirls here.
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