Independent journal on economy and transport policy
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PORTS
Port workers at the ports of the East Coast and the US Gulf are ready to strike from October 1st
A few days to reach an agreement in extremis with the United States Maritime Alliance, which declares itself willing to resume negotiations with the ILA but not to accept all the union's requests
North Bergen/Lyndhurst
September 18, 2024
In the absence of an agreement in extremis on the renewal of the contract
port workers on October 1st
of the East Coast of the United States and the U.S. Gulf will cross
Arms. The International Longshoremen's threatened him
Association (ILA), the union representing these workers,
calling for the level of port workers' wages to be raised
commensurate with the billions of dollars earned by the
ocean carriers that in the confrontation with ILA on the renewal of
are represented by United States Maritime
Alliance (USMX), the association to which maritime carriers belong
containerized vehicles, terminal operators and other port operators
operating in ports on the US East Coast and the Gulf.
Highlighting that the members of the union are preparing
for over a year to the possibility of going on strike, the
ILA Chairman, Harold J. Daggett, accused the USMX of
lack of good faith in conducting negotiations on the renewal of the
employment contract of the dockers committing themselves instead - denounced
- "in an ugly propaganda campaign aimed at painting the
ILA port workers as "greedy", also for
masking one's ineptitude and failure in these
negotiations that date back almost two years ago when the
exploratory talks with the union to which they were totally
unprepared".
ILA believes that wages are currently absolutely
inadequate as the cost of living has significantly increased
compared to six years ago when, on September 6, 2018, ILA and USMX
had signed the agreement for the renewal of the contract of the
port workers for a duration of six years, expiring on 30
September 2024. "For over three decades - he underlined
Daggett - the annual increase in the pay of ILA workers is
was, on average, only a measly 2.02%. For many years this
percentage was zero, as in the years 1993-1996 in
which ILA dockworkers have not seen increases
Wage. This type of treatment in negotiations is
unacceptable for the 2024 ILA port workers."
Among the ILA's requests there is also that of using
for wage increases, all income from the
Container Royalty, the tax rate on container traffic handled
in the ports of the East Coast and the US Gulf which is used
also to finance the health fund of port workers
managed by ILA. The union highlighted that "the
Container Royalty was originally traded as
additional salary and, for ILA, "that is the money of the
our associates earned through hard work! Our members -
specified the union - should never share their
Container Royalty money with ocean carriers that currently
are making record profits."
Referring to the amount of one dollar per ton of cargoes
Container Royalty, Daggett said that
"The USMX must face the fact that those years of
discontinuous annual increases of one dollar are now part of the
history". Highlighting that "companies that provide employment
ILA pays their executives billions of dollars in bonuses
while our port workers work all year round, 24 hours a day
24, in brutal conditions of freezing cold and scorching heat",
"Why," asked Daggett, "shouldn't we ask
An increase of ten dollars an hour? ILA dockworkers
deserve and companies have the money to pay for it".
Meanwhile, 177 trade associations have written to the
US President Joe Biden to "express - reads the
letter - Considerable concern about the state of negotiations between
the International Longshoremen's Association (ILA) and the United States
Maritime Alliance (USMX) to help them return to the
negotiating table to restart stalled negotiations".
The trade associations have invited the government "to
work immediately with both parties to ensure that
resume contract negotiations to ensure that there is no
disruptions in port operations and in the flow of
goods in the event that a new contract is not reached by the date of
deadline". The associations recalled that this is
was made on the occasion of the negotiations between the International
Longshore and Warehouse Union (ILWU) e la Pacific Maritime
Association (PMA) for the renewal of the workers' contract
ports of the West Coast ports.
"At this time - highlighted the associations of
Category in the letter - A strike would have a devastating impact
on the economy, especially as inflation is rising
drop". However, an intervention by Joe Biden, using
Taft Hartley Act which gives the president the power to
suspending a strike for 80 days has been considered by many
unlikely parties also in view of the upcoming elections
presidential elections to be held on November 5.
For its part, the United States Maritime Alliance, expressing its
agreement with the invitation of the 177 trade associations
resumption of negotiations with the ILA and specifying that it had "a
enormous respect for the ILA and its members", the association
representing the employer expressed disappointment with
"at this point, where the ILA has not
willing to reopen dialogue unless they are satisfied
all his requests. The only way to solve this situation
- observed the USMX - is to resume negotiations,
which we are willing to do at any time."
"We understand and appreciate the concern of these
trade associations, which - the USMX underlined - make themselves
what is at stake if negotiations fail to
progress, and we call on the ILA to return to negotiations so that we can
reach a new agreement before the expiry of our current
agreement, something we continue to believe is possible if the other
is willing to meet."
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