ILA shuts down ports on Atlantic and Gulf coasts

News

“USMX owns this strike now,” said ILA President Daggett. “They now must meet our demands for this strike to end.”

ILA President Harold Daggett Walks with strikers outside APM Terminals. © ILA

The International Longshoremen’s Association (ILA) has launched a coast-wide shutdown of ports from Maine to Texas at 12:01 a.m. (ET) on Tuesday, October 1, 2024.

Tens of thousands of ILA members set up picket lines at critical waterfront facilities across the Atlantic and Gulf Coasts, marking the first major strike of this scale in nearly five decades. This action followed the union’s rejection of the United States Maritime Alliance’s (USMX) final contract offer on Monday.

“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 President Harold Daggett, the leader of the 85,000-member ILA union. “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.”

USMX confirmed in a statement that final offers were exchanged on Monday before the contract expiration. Specifically, USMX increased its offer and requested an extension of the current Master Contract to create some room for continuation of the bargaining around the outstanding issues.

Photo by ILA

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

The ILA said USMX’s wage increase offer fell far short of the demands of ILA rank-and-file members for them to ratify a new contract.

“USMX owns this strike now,” said ILA President Daggett. “They now must meet our demands for this strike to end.”

ILA has dismissed reports claiming it is seeking a 75% wage increase over the six-year duration of a new contract, claiming that this figure is inaccurate. ILA President Daggett has said that a US$5 hourly increase, over six years, results in an average annual wage increase of approximately 9.98%.

Link to full interview with Harold Daggett, ILA President is available here.

The International Brotherhood of Teamsters, a powerful labour union representing workers in various industries including freight, warehousing, and logistics, announced their support for the strike. In a statement, Teamsters President Sean M. O’Brien affirmed their solidarity with the ILA as they demand fair wages and protection from automation, stressing that “Teamsters do not cross picket lines”.

“The ocean carriers are on strike against themselves after failing to negotiate a contract that recognises the value of these workers. Our ILA brothers and sisters play a critical role in keeping the American economy running, and they deserve industry-leading wages and robust job protections for the vital work they perform,” the statement reads.

“The U.S. government should stay the f**k out of this fight and allow union workers to withhold their labour for the wages and benefits they have earned. Any workers—on the road, in the ports, in the air—should be able to fight for a better life free of government interference. Corporations for too long have been able to rely on political puppets to help them strip working people of their inherent leverage.”

Port impact

The strike will affect operations at 36 ports. According to JP Morgan, the economic impact of the strike on the US economy could range from US$300m to US$5b per day.

Several US ports have issued updates on work stoppage operational plans. Port of New York and New Jersey, and Port Houston confirmed in separate statements that all container terminals will be closed until further notice beginning on Tuesday, Oct. 1.

“There will be no loading or discharge of containers to/from any vessels, trains and trucks. There will be no discharge of autos and rolling stock from ro-ro vessels,” the Port of New York New Jersey said.

Port Houston noted that rail operations at its terminals will be suspended for the duration of the work stoppage. However, ILA-supported public general cargo/multi-purpose facilities are not expected to be impacted by the work stoppage.

JAXPORT said that the strike will primarily impact one-third of its operations, particularly affecting international container volumes managed by SSA Jacksonville and vehicle shipments. However, the remaining two-thirds of JAXPORT’s activities, which include most cargo for Puerto Rico, will proceed without disruption. JAXPORT’s direct employees, numbering 172, are not members of the ILA, so they will continue to work as usual.

The Port of Virginia has announced that several key operations will be suspended until a resolution is reached on a new contract. The affected facilities include Norfolk International Terminals, Virginia International Gateway, Newport News Marine Terminal, Pinners Point Container Yard, Portsmouth Chassis Yard, the Reefer Service Area, and the Damage Annex.

However, the office of the Virginia Port Authority, Virginia International Terminals, and Hampton Roads Chassis Pool II will remain open during regular hours. Additionally, while Richmond Marine Terminal and Virginia Inland Port will continue to operate, cargo operations there may face some disruptions. Portsmouth Marine Terminal will function as normal. The Port of Philadelphia said that strike will impact operations at Philaport’s Packer Avenue Marine Terminal, Tioga Marine Terminal, Pier 80, and Pier 122, affecting breakbulk and roll-on/roll-off cargo handling.