The International Longshoremen’s Association (ILA) is seeking an almost 80% wage increase over the life of its next six-year contract with maritime employers on the East and Gulf coasts. Two ocean carrier sources familiar with the negotiations told the Journal of Commerce that the ILA is currently seeking a $5-per-hour increase in wages for each year of the contract’s term. That represents a 76% increase over six years in the top straight-time wage for longshore workers.

ILA’s proposed wage increase is a huge jump from the modest $1-per-hour bump that marked the previous two collective bargaining deals agreed to between the union and USMX.

The disclosure comes as ILA over the weekend sent a 60-day notice to the United States Maritime Alliance (USMX) warning that the union is prepared to strike if a new labor deal is not signed before the current contract’s September 30 expiration. 

It is expected that locals across the East and Gulf coasts will convene for meetings in New Jersey during the first week of September to review the union’s wage demands. ILA will also use the meetings to “instruct locals on strike strategies and what to expect if the ILA is on strike at the beginning of October,” the statement said.

The union’s wage proposal comes amid what appears to be another banner year for ocean carrier profitability as liner operators raise earnings forecasts and beat analysts’ profit estimates.

The ILA’s wage proposal would also be much higher than the 32% wage increase that the International Longshore and Warehouse Union (ILWU) was able to secure in its contract with West Coast maritime employers, although ILWU members also secured a one-time shared $70 million bonus.

Source: Journal of Commerce