Longshoremen’s Union Prepares for Potential Strike Amid Wage Dispute

05 Sep Longshoremen’s Union Prepares for Potential Strike Amid Wage Dispute

The International Longshoremen’s Association (ILA), representing 45,000 workers from Texas to Maine, will hold two days of meetings starting Wednesday to discuss wage demands and prepare for a potential strike on October 1. The meetings come after formal talks with the United States Maritime Alliance (USMX) employer group stalled over key issues such as pay, automation, healthcare, and retirement benefits.

The union has requested a 77% wage increase over the duration of the new contract, a figure well above the 32% rise secured by the West Coast longshore union last year. However, negotiations remain at an impasse, with ILA President Harold Daggett warning of a walkout if a new agreement is not reached by September 30, when the current six-year contract expires.

USMX has expressed willingness to resume negotiations but has struggled to set a meeting with ILA. Any labor disruption could significantly impact key ports like New York/New Jersey, Houston, and Charleston, South Carolina, causing delays during the holiday season and potentially influencing the U.S. presidential elections.

Global supply chains are already strained, and Vincent Clerc, CEO of A.P. Moller-Maersk, highlighted the potential “serious ripple effects” of a strike, citing Red Sea diversions as a current challenge. Many shippers have preemptively brought in goods to mitigate risks, but concerns continue to rise with each day of stalled negotiations.

The National Retail Federation and other industry leaders have urged both sides to return to the table, stressing that a strike would significantly affect retailers, consumers, and the broader economy.