ILA: “this is what it will take to bring us back to the table”

As the strike by the International Longshoremen’s Association (ILA) that has closed U.S. East and Gulf Coast ports continued into its second time, there seemed to be no signs of a breakthrough any time soon.

Last year’s long running West Coast ports dispute between the the Pacific Maritime Association and the International Longshore and Warehouse Union was resolved after the parties reached a tentative agreement following the efforts of Acting U.S. Secretary of Labor Julie Su. She has also been working to help the ILA and employers’ organization USMX reach an agreement. Yesterday, she released this statement:

“Over the last week and more, I have spent hours on the phone and in meetings with the parties urging them to find a way to reach a fair contract. This country’s port workers put their health and safety on the line to keep working through the pandemic so we could get the goods we needed as COVID raged and these workers will help communities recover from the devastating effects of Hurricane Helene. As these companies make billions and their CEOs bring in millions of dollars in compensation per year, they have refused to put an offer on the table that reflects workers’ sacrifice and contributions to their employer’s profits.

“The American economy has defied all expectations thanks to the Biden-Harris administration’s leadership. There is room for both companies and their workers to prosper. The parties need to get back to the negotiating table, and that must begin with these giant shipping magnates acknowledging that if they can make record profits, their workers should share in that economic success.”

Not surprisingly, the ILA was quick to post Su’s statement on its Facebook page.

Meantime, the most recent offer made by USMX (see earlier story) was swiftly rejected by the union.

Outlining “what it will take to bring the ILA back to the table to continue talks,” the union said it had rejected the “so-called ‘nearly 50% wage increase’” as “it fails to address the demands of our members adequately. They might claim a significant increase, but they conveniently omit that many of our members are operating multi-million-dollar container-handling equipment for a mere $20 an hour. In some states, the minimum wage is already $15. Furthermore, our members endure a grueling six-year wage progression before they can even reach the top wage tier, regardless of how many hours they work or the effort they put in.

“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.

“Let’s be clear: the ILA has been fully prepared to negotiate a fair contract since two years before its expiration. USMX’s claim that they are ready to bargain rings hollow when they waited until the eve of a potential strike to present this offer. The last offer from USMX was back in February 2023, and the ILA has been listening to our members’ concerns ever since.

“Our members feel underappreciated, especially given the sacrifices they made during the pandemic, keeping ports open and the economy moving. The wage increases in the previous contract were rendered meaningless by rising inflation. Meanwhile, foreign-owned ocean carriers continue to make record profits, imposing outrageous surcharges on consumers and customers, yet they balk at the idea of sharing these profits fairly with the ILA.

“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.

“Another critical issue is Container Royalty. 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.

“The ILA seeks more than a $5 yearly wage increase. Our members don’t work typical 9-to-5 jobs; they work extraordinary hours, sacrificing time with their families. Our position is firm: we believe in the value our incredible rank-and-file members bring to this industry and to our great nation. They deserve a contract that recognizes their contributions, secures their jobs, and reflects the profits generated by their labor.

“This is what it will take to bring the ILA back to the table to continue talks.”

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