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What to know about ILA demands in potential port strike

East and Gulf Coast ports face first work stoppage in nearly 50 years

Container truck lines like this one at the Port of Houston could disappear if the ILA strikes Oct. 1. (Photo: Jim Allen/FreightWaves)

It was 1977 since the last strike by the International Longshoremen’s Association, which represents unionized workers at ports on the U.S. East and Gulf coasts. The United States Maritime Alliance (USMX), representing 40 ocean carriers and terminal operators, has successfully negotiated 10 straight master contracts without a work stoppage with the ILA.

The current six-year agreement covers approximately 45,000 port workers employed in container and roll-on/roll-off operations at ports from Maine to Houston and runs through Sept. 30.

The ILA has threatened a strike as of Oct. 1, when the current contract expires. 

The union in June canceled bargaining over what it claimed was employers’ use of technology that bypassed union labor. The sides have not met since.


Here are the top issues being discussed. Neither side has confirmed exact details:

  • A wage increase higher than the reported 32% recently won by the International Longshore and Warehouse Union.
  • Retention of existing technology language from the 2018 contract.
  • A higher starting wage.
  • What employers call “premier” health care benefits.
  • Higher employer retirement contributions.

The master contract guides subsequent local agreements at 14 ports on the East and Gulf coasts.

The latest impasse to talks is a claim by the ILA that Danish operators APM Terminals and Maersk Line were using gate technology to process trucks autonomously at the Port of Mobile, Alabama, bypassing union labor. Employers say the gates have been in operation since 2008, prior to the 2018 contract.

Moreover, in recent videos, ILA leaders have assured that they currently have full automation protection and certain semi-automation job protections. 


Other reports said the ILA is also looking for a 77% pay hike, and union President Harold Daggett was reported to have rejected a 40% increase.

Neither side has commented publicly on the reports.

Ominously, Daggett in videos has also referred to a global alliance of port workers that could be mobilized as of Oct.1. It’s unclear what international support this has garnered.

In late August, the ILA and USMX each filed a Notice to Mediation Agencies, known as Form F-7, with the Federal Mediation & Conciliation Service (FMCS). The purpose of filing these notices is to inform the FMCS of a dispute between the parties, but it does not represent an agreement for mediation.

“USMX remains committed and prepared to resume negotiations with the ILA on a new Master Contract before the current agreement expires and to avoid a strike,” the employers said in a release. “The ILA continues to strongly signal it has already made the decision to call a strike and we hope the ILA will reopen dialogue and share its current contract demands so we can work together on a new deal, as we have done successfully for nearly 50 years.”

10 Comments

  1. Brenda

    It’s not fair to say all Corporate Companies are greedy and do not care about employees. Yes, Companies are profit driven, which produces jobs which hires employees. You can’t hire employee’s if you are not making profits.
    The cost of living in Los Angeles, CA is 48.3% higher than in Mobile, AL (pulled this from the Cost of living comparison website.)
    To try to negotiate the same wages between the two cities is ridiculous. The Union Leaders, knowingly and willingly stop commerce and trade at everyone else’s expense. Shame on our administration for not stopping this…..oh but that would be affecting votes in the Presidential election. What you do not realize, is the companies, making profits, hiring employees, who have nothing to do with this strike, but have cargo on the ships, are paying a hefty price. Why, you ask…because the steamship lines who own the vessels and the containers carrying the cargo, start charging ridiculous fees to the importer, who has nothing to do with the strike, for made up fees, like congestion port charges, bunker increase, emergency increase….etc…etc… these charges range from $2000-$3000 per container. So,the importer needs to increase the selling price to recoup his loss. You see how well this plays out. The Union Leaders are drooling and the union worker will walk away with some agreed benefits, while everyone pays for it.

  2. AA

    All-in-all, USA is free-market economy. It seems clear that union is using their count as as a blackmail tool at a time when ports across the world are going 100% automation. Also, union is asking wages equal to West coast ports without offering the view that some of those ports have gone highly automated, requiring much highly skilled resources to drive all those computers (not to mention high cost of living on west coast). Seems high-time for revision for USA’s labor laws before these massive unions drive competitiveness of USA economy to the ground with their strength to blackmail, which in-turn forces companies to relocate abroad due to high-labor cost at home. (Note ports also loose their volumes as new transload hubs emerge)

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.