The International Longshoremen’s Association (ILA) is seeking a nearly 80% wage increase in its next six-year contract with maritime employers on the East and Gulf coasts. This demand follows the ILA’s issuance of a 60-day notice to the United States Maritime Alliance, indicating the union’s willingness to strike if an agreement isn’t reached by the end of the current contract on September 30.
The ILA plans to convene local chapters across the East and Gulf coasts in New Jersey during the first week of September to discuss their wage demands and prepare for potential strike actions. ILA President Harold Daggett emphasized the union’s readiness to strike, stating that with less than 30 days remaining before the contract’s expiration, preparations for a strike on October 1 must be made.
Sources familiar with the negotiations reported that the ILA is requesting a $5-per-hour wage increase for each year of the contract, amounting to a 76% increase over six years. This proposed increase is significantly higher than the $1-per-hour increments from previous agreements and exceeds the 32% wage hike secured by the International Longshore and Warehouse Union in their West Coast contract, which also included a $70 million bonus.
This proposal arises during a profitable period for ocean carriers, who have raised earnings forecasts and exceeded profit estimates. The ILA’s wage demands also reflect broader trends in labor negotiations, following recent successful contracts by the United Auto Workers and the Teamsters, who achieved substantial wage increases in their agreements with automakers and UPS, respectively.
The outcome of these negotiations and the potential strike could significantly impact the maritime industry and labor relations on the East and Gulf coasts.
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