It is official, the International Longshoremen’s Association (ILA) is on strike. For months now, they have been threatening a strike and now have made good on that “promise.”
The ILA contract expired last night, September 30th, and represents 45,000 dock workers across 14 ports on the East and Gulf Coasts. They have not had a strike or significant labor disruption since 1977.
The ILA started negotiations in March 2023 with the goal of coming to terms on the local issues before addressing the master contract, but the negotiations on both the local work rules and benefits as well as the master contract have not gone well. Last Fall, ILA leadership advised their rank and file to prepare for a strike, and the two sides have not met since June when the ILA walked out of negotiations.
The main points of contention are wages and automation. The ILA has proposed a 78% increase in wages. The employer group, United States Maritime Alliance (USMX), countered with a 32% increase and upped it to a nearly 50% last night. The ILA is staunchly against any form of automation and has made their stand against an automated gate feature at the Port of Mobile part of their contract negotiations…or better said, contract stalemate.
In an attempt to get the ILA back to the table, USMX filed an unfair labor practices claim with the National Labor Relations Board (NLRB). Likely in response to this claim, the head of USMX was summoned to the White House this past Friday to meet with Acting Secretary of Labor, Julie Su, and Secretary of Transportation Pete Buttigieg.
The Biden Administration has said they will not intervene in negotiations nor invoke Taft-Hartley to force dockworkers back to work. Harold Daggett, president ILA, has stated they do not want a federal mediator and if they are forced to return to work, they will do so at a very slow pace. As such, there is not much left in the federal toolbox to get this issue resolved quickly.
Many of us still bear the battle scars from the 2002 lockout on the West Coast. It lasted eleven days and was only ended then President George W. Bush invoked Taft-Hartley. Those eleven days of closures took months to work through the supply chain. It was painful.
Speaking of the West Coast, the question on many a mind is, how will the International Longshore & Warehouse Union (ILWU), react? Will there be sympathy strikes or slowdowns on the West Coast? Our guess is the ILWU will not have a significant reaction. There is not a history of reciprocity between the two unions as it relates to labor unrest. The ILA has not walked off the job in support of the ILWU during labor strife on the West Coast. Quite the contrary, they have raised their hands for more volumes.