Shipping and Logistics
ILA rejects 50% raise, strikes ports on East Coast, Gulf Coast
Written by Michael Cowden
October 1, 2024
The International Longshoremen’s Association (ILA) launched a strike just after midnight on Tuesday at East Coast and Gulf Coast ports.
The work stoppage spans from New England to Texas. It came after a last-ditch offer by the United States Maritime Alliance (USMX), which represents maritime employers, failed to meet union demands.
The ILA wanted a wage increase of 77% over the life of a proposed six-year contract, according to the Associated Press.
USMX on Monday afternoon said that it had offered the union a 50% increase over the life of the contract and a tripling of contributions to employee retirement plans. The group said it had offered better health care and to keep language from the prior contract regarding automation.
The ILA seeks higher wages as well as limits to automation, which the union sees as an existential threat to its members’ jobs.
“The Ocean Carriers represented by USMX 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 union said in a statement on Monday.
“They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates,” the union added.
As SMU has previously reported, the strike could cause could throw manufacturing supply chains “into disarray” and have a “devastating impact” on the economy. It also has the potential to reignite inflation.
Michael Cowden
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