The International Longshoremen’s Association’s (ILA) strike was suspended on October 3rd after immense pressure by the Biden Administration on the members of United States Maritime Alliance (USMX) to sweeten the wage offer.
The employer group originally offered a 32% pay increase and, in the pre-strike eleventh hour, increased it to a 50% increase. Three days into the strike, USMX succumbed to the pressure and offered the ILA a 62% wage increase over the six-year term of the contract. The offer was tentatively accepted by the ILA, and, in exchange, the contract was extended to January 15, 2025 and labor went back to work.
While wages were clearly a contentious issue, another equally contentious issue remains…automation. USMX is proposing to maintain the current contract language and pathway to automation, and the ILA would like to block any contract language or any form of automation. They are on polar opposites of this issue, and it does not bode well for the next round of negotiations.
The two organizations will resume negotiations on November 15th, after the election. With the contract being extended to January 15th and three major holidays between November 15th and then, it is going to be challenging to come to terms on the remaining concerns.