Independent journal on economy and transport policy
07:14 GMT+1
PORTS
Biden sides with the ILA and urges the USMX to submit a better offer for the renewal of the East Coast and Gulf US port workers' contract
The Department of Transportation has asked ocean carriers on behalf of the government to lift their surcharges
Washington
October 2, 2024
The White House finally intervened in the controversy
on the renewal of the port workers' contract, which contrasts the
International Longshoremen's Association (ILA) and the United
States Maritime Alliance (USMX), the organization that represents the
main container shipping companies that call at
in the ports of the East Coast and the US Gulf and several companies that
operate in these ports. The threatened strike in the airports of
These regions began yesterday after a few hours earlier
the USMX had submitted an offer in extremis, which he said was very
better than the previous ones, which however was rejected
by the union which did not appreciate either the content of the
proposal or the time at which it was submitted.
Many organizations representing American companies
various commercial and industrial sectors had asked in the
in recent weeks and in the last few hours to Joe Biden to resort to the
Taft-Hartley Act which gives him the powers to suspend
certain forms of strike and to impose on the opposing parties
resume negotiations. Just before the start of the strike, the
American president had said he did not believe in the law
Taft-Hartley but rather in collective bargaining. In
Biden, confirming that he believes that "the
collective bargaining is the best way for workers
to get the pay and benefits they deserve", although not
by stating it explicitly, he sided with the
trade union. "I urged the USMX, which represents a group of
foreign-owned carriers - he said -
sit down at the table and present a fair offer to the workers
of the International Longshoremen's Association that ensures that
adequate remuneration in line with their valuable contribution".
Biden did not say so, but his statement suggests that
The offers submitted so far by the employers' association were not
congruent with the expectations of port workers and the trade union that
represents them.
That Biden is aligned with the ILA's position is confirmed by the
Statement by the President recalling that "carrier
have made record profits since the start of the pandemic and
in some cases, profits grew by more than 800% compared to
those before the pandemic". A relief that follows the same
equal to that moved to containerized maritime carriers by all
representatives of the International Longshoremen's Association. "The
executive pay - Biden continued, referring to the
compensation to managers of shipping companies - is
growth in line with these record earnings and earnings were
distributed to shareholders It is right that the workers, who
are placed at risk during the pandemic to maintain ports
- observed the US president - also find
a significant increase in their wages."
"As our nation recovers from the aftermath
of Hurricane Helene - Biden added - port workers
will play a crucial role in providing communities with the
resources they need. This is not the time for carriers
while collecting record profits, to refuse to trade
a fair wage for these essential workers. Mine
Administration - warned the president - will monitor
any speculation activity on the tariffs that
ocean carriers, including those represented in the
USMX Board of Directors'.
"It's time," Biden concluded, leaving no room
to other hypotheses on its position in the dispute between ILA and
the USMX - that the USMX negotiate a fair contract with the workers
reflecting the substantial contribution they have made to the
economic recovery".
In the meantime, replying to the latest offer made "at the
eleventh hour" by the US Maritime Alliance, and clarifying the
reasons that led the union to reject it, ILA
claimed that it was another attempt by the USMX
"to distort the facts and deceive the public." The
The union explained that the alleged "wage increase of
almost 50%" was rejected "because it was not
is able to adequately satisfy the requests of our members.
They could support - noted the union referring to the USMX
- that this is a significant increase, but opportunistically
overlook the fact that many of our members manage
Millions of Container Handling Equipment
dollars for only $20 per hour. In some States - he recalled
The union - The minimum wage is already set at 15
Dollars. In addition, our members endure an exhausting
salary progression of six years before being able to reach the
higher wage level, regardless of how many
hours work or the commitment they put in."
"The USMX - continued the ILA - also neglects the fact that
that two-thirds of our members are constantly available,
without a guaranteed job if you don't work on any ship. The
Our members are entitled to benefits only on the basis of hours
worked the previous year, which makes them vulnerable in the event of a
decline in work. However, in the context of this
progressive system, there is no incentive to advance more
quickly for hard-working associates.
Regardless of their dedication, they have to wait for six whole
years to reach the highest salary."
"Let's be clear - the union pointed out - the ILA is
was immediately ready to negotiate a fair contract two years after the
its expiry. The USMX's affirmation that it is ready to negotiate
sounds false since they waited until the eve of a
potential strike to present this offer. The latest offer
of the USMX dates back to February 2023 and since then the ILA has listened to the
concerns of its members, who feel unappreciated
especially given the sacrifices made during the pandemic, maintaining
open the ports and get the economy moving. Wage increases
included in the previous contract were nullified by the increase
inflation. Meanwhile, the company's own ocean carriers
continue to make record profits, imposing
exorbitant to consumers and customers, but they back off the idea
to share these profits fairly with ILA".
Another point of contrast between the ILA and the USMX is
the introduction of forms of automation in port operations.
Explaining the reasons that led the union to reject
the latest offer from the employers' association, the ILA has confirmed that it
be "firmly opposed to any form of automation,
in whole or in part, replacing posts or functions
historical work conditions. We will not accept the loss of work and
livelihood for our members - underlined the union
- due to automation. Our position is clear:
Preservation of jobs and job functions
is non-negotiable".
Meanwhile, if the main shipping companies
have announced, and some have already
introduced, surcharge for container shipments to ports
of the East Coast and the Gulf, which for the
departures originating from the Far East, Europe/Mediterranean
and from South America they generally stand at about 1,000-1,500
dollars for 20' foot containers, the Department of
American transport, asked on behalf of the government to the carriers
seafarers "to revoke their superintendents". "No one
- specified the US Department - should take advantage of a
block to profit, especially at a time when entire
regions of the country are recovering from Hurricane Helene. The
Federal Maritime Commission - the ministry specified - has
declared that it will use the authority requested by the
to ensure that the fees charged are legitimate, and
Legal. President Biden has ordered our administration
to use every authority at the federal level and to support the
functional state and local authorities in the use of
at their disposal".
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
phone: +39.010.2462122, fax: +39.010.2516768, e-mail
VAT number: 03532950106
Press Reg.: nr 33/96 Genoa Court
Editor in chief: Bruno Bellio No part may be reproduced without the express permission of the publisher