ILA demands on wages and automation as port strike looms in US East Coast
NEW YORK : A potential strike by members of the International Longshoremen’s Association (ILA) threatens to shut down ports along the US East Coast at the end of this month, ILA President Harold J. Daggett, a third-generation member of the ILA, took to social media to voice his viewpoints.
In what was titled as a “Candid Conversation” on a wide range of topics, the stevedore union’s boss, doubled down on the potential for a work stoppage if ILA, representing some 45,000 workers, cannot come to terms with terminal operators represented by the US Maritime Exchange (USMX). Daggett has served as President since 2011 and has been involved in similar negotiations previously that achieved agreements without walkouts.
Cargo has already been shifting to the US West Coast. In something of a reversal to the 2022-2023 situation as Pacific ports, in the midst of a similar labour negotiation, lost cargo to the US Gulf and East Coast Ports.
The Port of Los Angeles (POLA), in a mid-August, 2024 report detailing volumes, said that it saw record volumes as July 2024 cargo throughput was pegged at 939,600 teu, soaring 37% over the same period in the previous year- with seven month throughput (Jan – July) up 18% from the previous year. POLA Executive Director Gene Seroka, in a recent media interview, alluded to strong growth due to an early peak season combining both “back to school” and the seasonal inventory build of holiday merchandise.
But the East/ Gulf ports are not going at the same pace as the West Coast ports. Container shipping analyst John McCown said, in a recent report: “Clearly the concern of a possible ILA strike affecting the East/ Gulf Coasts at the end of September has and will result in some boxes being destined for West Coast ports…July showed a…40.5% increase [compared to the previous year] at West Coast ports compared to a 5.5% increase at East/ Gulf Coast ports.”
The ILA’s Daggett, who spent the early part of his career at SeaLand, founded by Malcolm McLean in the late 1950s, stresses the value of human labour. He spent several minutes in the interview, posted by the ILA on Youtube and you can watch the full interview below, lamenting the growth of automation generally and pointing to the deleterious impacts of automated marine terminals. He said, “Someone has to get into Congress and say ‘Time-out’…what good are [machines] if they are going to put people out of work.”
As the discussion shifted to economics, he noted at the times of previous settlements between the ILA and terminal operators, “the companies were making millions of dollars”. However, he continued, perhaps alluding to the record good times in the liner industry, which operates many of the terminals, following the pandemic, he said: “Now they are making billions. I want a piece of that for my men.”
He stressed that the ILA members had worked continually, during the pandemic, with, unfortunately, some casualties; “We kept them going.” At this juncture, with discussions between the ILA and USMX seemingly at an impasse on negotiations for a new six-year contract, he said, that, if the employers don’t understand what his members are seeking, “I have to go into the street, and we have to fight for what we deserve.”
Now, various retail organisations, representing the cargo interests who are keenly aware of seasonal patterns, are urging both sides to return to negotiations. In response to questions about what might happen next, Daggett stressed that he did hope for some cooperation, but said: “When my men hit the streets, every single port from Maine to Texas will lock down.”
After citing other possibly disastrous consequences as supply chains outages ripple through the economy in the event that a strike were to happen, he said, “You know what, you’re better off sitting down and let’s get a contract.”