Port employers represented by the United States Maritime Alliance late Wednesday said they are open to resuming negotiations with the International Longshoremen’s Association, but not under pre-conditions set by the union.
A strike by up to 45,000 ILA members that began Oct. 1 has shut down container handling and ro-ro services at ports from Texas to Maine.
After President Joe Biden on Tuesday backed the union’s actions and called on employers to make a fair contract offer, ILA President Harold Daggett said that the union would stand firm on its demand for a $5 per hour wage increase. Employers are offering around $3, according to sources with knowledge of the contract talks.
“USMX’s goal continues to be focused on ratifying a new Master Contract that addresses all the critical issues the parties need to bargain,” the employers said in a statement posted on the USMX website. “Reaching an agreement will require negotiating — and our full focus is on how to return to the table to further discuss these vital components, many of which are intertwined. We cannot agree to preconditions to return to bargaining — but we remain committed to bargaining in good faith to address the ILA’s demands and USMX’s concerns.”
Marine terminals and container lines on Monday said their wage offer pegged to the ILA top tier hourly pay rate of $39 an hour totals 50% over the six years of the coastwise master contract.
The ILA rejected the new offer as inadequate “for many members who earn $20 an hour” in states such as New Jersey where the minimum wage is $15 per hour. The previous master contract negotiated in 2018 specifies base pay of $20 for new employees, ranging up to $39 for workers with six or more years’ experience. The union said it is seeking better than a $5-per-hour pay hike per year over the life of the contract.
The union also pointed out that members must work six years to reach the top wage tier.
“USMX also overlooks the fact that two-thirds of our members are constantly on call, with no guaranteed employment if no ships are being worked. Our members qualify for benefits only based on the hours they worked the previous year, making them vulnerable if there’s a downturn in work. Despite this, there is no incentive within the progression system for hard-working members to advance faster. Regardless of their dedication, they must wait six full years to attain the top wage.”
The union said it was ready to negotiate a new contract in 2022, criticizing employers for waiting until the eve of a potential strike to make a new offer. The ILA also claimed the last master contract offer it got was in February 2023.
Wage increases negotiated in the previous contract have been wiped out by inflation, the ILA said, repeating its message that ocean lines based outside the U.S. refuse to share record profits with union employees.
“Furthermore, the ILA is steadfastly against any form of automation — full or semi — that replaces jobs or historical work functions. We will not accept the loss of work and livelihood for our members due to automation. Our position is clear: the preservation of jobs and historical work functions is non-negotiable.”
The USMX has already said that they are in agreement with the union on automation.
The union also is seeking its share of container royalties paid under the terms of the master contract. “These funds were intended to be a wage supplement paid out to our members, not to be shared with employers. The ILA demands 100% of its Container Royalty monies, along with other jurisdictional demands, to ensure our members receive what is rightfully theirs.”
Find more articles by Stuart Chirls here.
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Art Arway
Looking for better wages and benefits are traditional demands. Nothing new for management. However, the issue of automation has been a sticking point for many years. The US is far behind the global rise in port automation. No secret that automation has increased the pace of the movement of cargo, and increased efficiency and cargo shipping costs. The ILA on both coasts should develop a joint strategy for the introduction of automation, even if in a minuscule amount. Grandfathering current workers is one approach. It is one thing to protect existing workers, but to negotiate for those who are not on payrolls, or the “unborn babies” of the future is a reach too far. Take care of you and yours, yes. Ones who are unknown?