Port strike begins as ILA rejects last minute USMX offer

Photo: ILA

As has seemed increasingly likely, the International Longshoremen’s Association (ILA) went on strike at 12:01 a.m. , today, Tuesday, October 1, rejecting a last minute offer from the employers’ organization, USMX, and shutting down U.S. ports from Maine to Texas, with ILA rank-and-file members began setting up picket lines at waterfront facilities up and down the Atlantic and Gulf Coasts.

There had been a faint glimmer of hope Monday evening when the employers’ organization, the United States Maritime Alliance (USMX) released an update saying:

“In the last 24 hours, the USMX and ILA have traded counter offers related to wages. The USMX increased our offer and has also requested an extension of the current Master Contract, now that both sides have moved off their previous positions. We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement.

“Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation.”

The ILA rejected that proposal, saying that it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.”

“USMX brought on this strike when they decided to hold firm to foreign owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth,” said ILA President Harold Daggett. “We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve.”

TAFT-HARTLEY ACT

Any action by President Biden to invoke the Taft-Hartley Act to compel the ILA members to return to work is likely to be a very long time in coming.

Here’s what he said in answer to a reporter’s question yesterday afternoon:

Q Mr. President, will you intervene in the dockworkers strike if they go on strike on Tuesday?

THE PRESIDENT: No.

Q Why not?

THE PRESIDENT: Because there’s collective bargaining, and I don’t believe in Taft-Hartley.

Following that, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers call on President Biden to intervene by invoking the Taft-Hartley Act, which will force ports to resume operations while negotiations continue.

“There will be dire economic consequences on the manufacturing supply chain if a strike occurs for even a brief period. NAM estimates show a strike at the East and Gulf Coast ports would jeopardize $2.1 billion in trade daily, and the total economic damage could reduce GDP by as much as $5 billion per day.

“The president can protect manufacturers and consumers by exercising his authority, and we hope he will act quickly.”

UPDATE: This afternoon USMX released this statement:

“Our industry directly supports hundreds of thousands of jobs in the United States and is a significant economic driver for the U.S. economy and families across the country. USMX is proud of the wages and benefits we offer to our 25,000 ILA employees, and strongly supports a collective bargaining process that allows us to fully bargain wages, benefits, technology, and ensures the safety of our workers, day-in and day-out.

“We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike. Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running. We look forward to hearing from the union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”