ILA Strike Update

WSSA has been monitoring the ILA situation closely and participating in various industry calls and association efforts to pressure the parties to get back to the negotiating table. The ILA has provided the 60 day “strike” notice as required under USA Labor Law (Section 8 of the Labor-Management Act of 1947). The notice basically states that the ILA will not work without a contract, will not accept an extension of the current contract and strike action could commence on October 1, 2024.

The two sides remain extremely far apart on the economics of the agreement, and this is the primary sticking point. Most other issues, including automation, have been resolved and the negotiation is now primarily about compensation. The ILA feels that they have been underpaid compared to their counterparts on the west coast, and they are looking for an 80% wage increase over a 6-year period. The ILA has announced wage scale meetings for September 4th and 5th, but it is not yet clear if USMX (the management group negotiating with the ILA) will be at this meeting. However, we see these meetings as the next possibility for the two parties to meet. This article from Workboat provides more information on the potential strike and negotiations.

Unfortunately, there is not a lot of time left to work on these issues, and we are concerned that negotiations are not moving forward. The gap is very wide in terms of the compensation ask. Industry stakeholders, such as the Port of NY/NJ and carrier executives, such as Maersk President Vincent Clerc, remain optimistic that an agreement will be made prior to the end of the contract, and we are hoping that they are correct. 

It is reported that the White House and administration are not planning to get in the middle of the negotiations at this point. The Secretary of Labor, Julie Su, could become involved at a later date. Due to election year politics, this will be an extremely sensitive issue.

Next steps from WSSA perspective in terms of pressuring all parties and engaging with all other trade associations (such as the NRF/National Retail Federation, AgTC/Agriculture Transport Coalition) will be to continue to work with all stakeholders to get the parties back to the negotiating table and come to an agreement prior to September 30. We encourage all interested shippers to contact their Congressional representatives to let them know that any disruption to port operations will be devastating to the economy and will hurt local business and jobs.

*image credit International Longshoreman's Association