Port Strike Update: Union Turns Down ‘Nearly 50% Wage Increase’

International Longshoremen’s Association (ILA) negotiators have turned down a near 50 percent pay increase offer from the United States Maritime Alliance (USMX) as workers continue to strike across U.S. ports.

East and Gulf Coast port workers walked off the job at midnight on October 1 after negotiations failed to produce an agreement on a new master contract between the USMX and ILA members. Among the sticking points between the two parties are arguments over pay and the use of automation at American ports. It is the first strike among longshoremen and other associated port roles in nearly 50 years.

The union has now said it has rejected a “so-called nearly 50 percent wage increase” as it “fails to address the demands of our members adequately.”

“They might claim a significant increase, but they conveniently omit that many of our members are operating multi-million-dollar container-handling equipment for a mere $20 an hour,” the statement issued on October 1 reads. “In some states, the minimum wage is already $15. Furthermore, our members endure a grueling six-year wage progression before they can even reach the top wage tier, regardless of how many hours they work or the effort they put in.”

According to the previous master contract, which expired on September 30, pay ranges for dock workers began at $20 per hour for new recruits, and employees who have worked for six or more years get $39 hourly rate.

USMX said in a statement that it has “demonstrated a commitment to doing our part to end the completely avoidable ILA strike.”

“Our current offer of a nearly 50 percent wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running,” the statement reads. “We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”

While a detailed outline of the offer made to the ILA is not available, USMX said in a previous statement issued on September 30 that its offer “would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation.”

Newsweek has contacted USMX for comment via email outside of regular working hours.

The ILA also said the offer was only brought to the table a day before the strike began on October 1, arguing it should have been made earlier.

“USMX’s claim that they are ready to bargain rings hollow when they waited until the eve of a potential strike to present this offer,” the statement reads. “The last offer from USMX was back in February 2023, and the ILA has been listening to our members’ concerns ever since.”

The federal government has confirmed it does not plan to intervene in the strikes using the Taft Hartley Act, which would implement an 80-day cooling off period which would see dock workers return to port while negotiations continue.

“We’ve never invoked Taft-Hartley to break a strike and are not considering doing so now,” a Biden administration official told Reuters. “We encourage all parties to remain at the bargaining table and negotiate in good faith.”

“President Biden and Vice President Harris are closely monitoring the strike at East Coast and Gulf Coast ports,” the White House said in a statement seen by Newsweek. “Senior White House and Administration officials continue to work around the clock to get both sides to continue negotiating towards a resolution. The President and Vice President believe collective bargaining is the best way for both American workers and employers to come to a fair agreement.”