As we continue to move closer to the expiration of the current International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) Master Contract, no progress seems to be forthcoming on a renewed agreement between the sides. Recent statements from both sides paint a significant gap in wage demands as the biggest current issue. 

The Journal of Commerce recently reported that the ILA was looking for a nearly 80% wage increase over the span of the next six-year agreement. The use of automation and technology at ports is another sticking point between the two sides, with the ILA accusing USMX and port employers of using autogates in violation of the current contract. 

A USMX statement claims the alliance has made several offers to the ILA over the past two years of negotiations. The statement also says the most recent offer would increase pay and benefits across the board. 

“Our latest proposal would provide industry-leading wage increases, boost employer retirement contributions, offer new employees higher starting wages, raise employer contributions to local benefits, and continue to provide premier health care coverage,” the USMX said in the release. 

The USMX also said it would maintain the current verbiage regarding technology that allows the ILA to consult with employers before any new technology is introduced to the docks. 

However, the ILA hit back in a Facebook post saying that “the reality on the ground is far different from the picture they are trying to paint.” The post claims neither the autogate issue nor the wages have been properly addressed.  

They accused APM Mobile of dragging their feet when it comes to resolving the issues at the Port of Mobile. But they also said other ports are having similar issues.  

The biggest difference between the two sides appears to be the wages, though. The ILA says the most recent USMX proposal is nowhere near where it needs to be.  

“We are very far apart, particularly on the economic issues,” the ILA said in the Facebook post. “In fact, we are at an impasse.” 

Even though negotiations seem to be stalled, Maersk CEO Vincent Clerc is optimistic that the sides will be able to avoid a strike. Clerc said on Maersk’s Q2 earnings call that he views a strike as “highly unlikely” but did admit it is still a possibility.  

With the current contract set to expire on September 30, 2024, time is running out for the two sides to come to an agreement. The ILA has already submitted its 60-day notice that it intends to strike without a new contract.  

“We have been clear that we are ready to continue bargaining and work toward an agreement that recognizes our workers’ contributions and creates a sustainable future for both parties,” the USMX said.  

Scarbrough will continue to monitor the situation and will provide updates as necessary.