International Maritime

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ILA halts contract talks , links wage proposal to booming carrier financials

By Michael Angell

The International Longshoremen ’ s Association ( ILA ) in early June suspended negotiations with management over a new six-year contract covering ports along the US East and Gulf coasts due to automation projects it claims violate the existing deal . Just a few days later , the union staked out its position on wages , arguing that its 45,000 dockworker members deserve an increase “ commensurate ” with the booming financial results ocean carriers have seen in recent years .

The ILA said in a June 10 statement that it had canceled talks with the United States Maritime Alliance ( USMX ) scheduled to begin the next day “ after discovering that APM Terminals and Maersk Line are utilizing an Auto Gate system , which processes trucks without ILA labor ,” adding that the union will not return to the negotiating table until the auto gate issue has been resolved .

“ This is a clear violation of our agreement with the USMX , and we will not tolerate it any longer .”

“ This system , initially identified at the Port of Mobile , Ala ., is reportedly being used in other ports as well ,” the ILA said . “ This is a clear violation of our agreement with the USMX , and we will not tolerate it any longer .”

Maersk has said the technology projects do not violate the existing ILA-USMX master contract set to expire Sept . 30 . In a statement to the Journal of Commerce , the company said it was “ disappointed ” that details of ongoing negotiations were made public , but that it hopes to resume talks as quickly as possible .

“ We will continue to engage with all stakeholders , including the ILA , to address their concerns ,” Maersk said . “ APM Terminals , through the representation of the USMX , looks forward to resuming constructive negotiations with the ILA to find mutually beneficial solutions that support the future of our industry .”

ILA President Harold J . Daggett , the union ’ s chief negotiator , cited automation projects at Pier 400 at the Port of Los Angeles and the use of semi-automated cranes at the Port of Virginia as examples of earlier automation projects by Maersk that resulted in fewer longshore jobs .

“ There ’ s no point trying to negotiate a new agreement with USMX when one of its major companies continues to violate our current agreement with the sole aim of eliminating ILA jobs through automation ,” Daggett said . “ Most of the problems the ILA is facing on the East and Gulf coasts all stem from APM Terminals and Maersk Line .”

The union said its members have “ observed an increasing number of IT personnel on marine terminals , with concerns that APM and Maersk ’ s IT departments are encroaching on their jurisdiction .” The ILA also noted it has been auditing the impact of technology on other jobs at marine terminals and awaiting results of that study .

A ‘ commensurate ’ wage hike

After suspending contract talks , the ILA on June 12 put out a separate statement in which it accused the ocean carriers and marine terminals represented by the USMX of reaping “ massive profits in recent years , while failing to reward the workforce responsible for these gains .”

Although it did not provide specific figures — either in dollar or percentage terms — the union said it will “ demand a wage increase commensurate with those revenues ” when negotiations resume .

Among other USMX members , the ILA cited revenues at Maersk , which soared 55 % year over year to $ 61.7 billion in 2021 and 32 % to $ 81.5 billion in 2022 .

In its 2023 fiscal year , Maersk reported revenue of $ 51 billion , according to Capital IQ , a sister company of the Journal of Commerce within S & P Global . Maersk also recently increased its full-year 2024 earnings guidance to reflect improved results from strong demand compounded by the Red Sea crisis .

“ Companies like Maersk are repeatedly trying to eliminate ILA jobs with the introduction of automation while raking in billions of dollars ,” Daggett said the statement . “ They are in for a rude awakening . This is our time , and the ILA will demand our ILA longshore workers get big boosts in their wages .”

During the previous two contract cycles , the ILA received $ 1 per hour wage increases for each year of their six-year terms .

Looming strike threat

The suspension of negotiations and public airing of wage demands by the ILA comes as a deadline for the conclusion of the master contract talks rapidly approaches . Dagget has previously said the union will go on strike for the first time in nearly 50 years if a new contract is not in place before the Sept . 30 expiration of the current deal .

The ILA had also set a May 17 deadline for the conclusion of local contract negotiations with individual ports , including Mobile . The conclusion of those local talks was necessary for the two sides to proceed to the master contract talks covering longshore wages coastwide .

According to a source familiar with the ongoing labor negotiations , Mobile is the only port where local talks have not been settled . The source also said the technology at

14 Journal of Commerce | July 1 , 2024 www . joc . com