Tensions Rise as ILA Leader Harold Daggett Holds Firm on Strike Threat

09 Sep Tensions Rise as ILA Leader Harold Daggett Holds Firm on Strike Threat

Bombastic International Longshoremen’s Association (ILA) leader Harold Daggett has heightened tensions over a potential strike on the US East and Gulf Coasts. In a letter to union members, Mr. Daggett and his son Dennis, EVP of ILA, dismissed recent statements by the United States Maritime Alliance (USMX) as “propaganda,” and reiterated the union’s firm opposition to automation and corporate practices.

Citing inflation’s impact on wages and criticizing USMX’s “corporate greed,” the Daggetts have taken a hardline stance, demanding no form of automation, claiming existing healthcare provisions are inadequate, and pushing back against efforts to install cameras in workstations. They emphasized that the union is focused on securing better conditions for its members, stating, “We are taking on this fight for you and your families!”

With formal talks stalled, industry experts believe a strike is increasingly likely, with many pointing to the proposed 78% wage increase as a key sticking point. Stephanie Loomis, head of ocean freight for Rhenus, noted that the ILA’s demands, especially around automation, represent a rollback from previous agreements and make a strike seem inevitable.

Political factors further complicate the situation, particularly with the US presidential election approaching. The Biden administration may be limited in its ability to intervene, as the ILA leadership has expressed its preference for independent negotiations. The potential use of the Taft-Hartley Act, which could impose an 80-day cooling-off period, remains a wildcard, especially given the political stakes.

Shippers and retailers are already bracing for the worst, with the Retail Industry Leaders Association warning that any work stoppage would have devastating effects on supply chains, especially as peak shipping season coincides with China’s Golden Week holiday.

The stakes could not be higher as the ILA and USMX remain deadlocked, and the possibility of a strike looms larger each day.