Roughly 25,000 striking dockworkers at ports along the East and Gulf Coasts of the U.S. are rallying for higher pay and stronger guardrails around their jobs being automated out of existence. Members of the International Longshoremen’s Association, or ILA, a union representing the dockworkers, walked off the job for the first time in nearly 50 years as they push for “the kind of wages we deserve,” ILA President Harold Daggett stated in a social media post.
Union officials argue that wages should reflect the torrid inflation that has eroded dockworkers’ paychecks under their now-lapsed labor contract. The United States Maritime Alliance, known as USMX, represents ports and ocean carriers, and the ILA claims that longshore workers “continue to be crippled by inflation due to USMX’s unfair wage packages.”
How much do longshoremen make?
Only workers at 14 East and Gulf Coast ports are on strike; West Coast longshoremen are represented by a different union, which negotiated significant wage increases for its members in 2023. ILA members earn significantly less than their peers on the other side of the country.
Pay for longshoremen is based on their years of experience. Under the ILA’s former contract with USMX, which expired recently, starting pay for dockworkers was $20 per hour. This rose to $24.75 per hour after two years and to $31.90 after three years, topping out at $39 for workers with at least six years of service.
The union is demanding a 77% raise over six years, which translates to a $5 increase per hour for each year of the contract. Under the union’s proposal, workers would earn $44 for the first year, $49 for the second, and up to $69 in the final year.
Harry Katz, a professor of collective bargaining, stated, “I think this work group has a lot of bargaining power. They’re essential workers that can’t be replaced, and the ports are doing well.”
What’s a typical annual salary?
The top-tier hourly wage of $39 translates to over $81,000 annually, but dockworkers can significantly increase their earnings by taking on extra shifts. According to a 2019-20 annual report from the Waterfront Commission of New York Harbor, about one-third of local longshoremen made $200,000 or more a year.
A more typical longshoreman’s salary can exceed $100,000, but this requires logging substantial overtime hours. ILA President Daggett claims that these higher earners work up to 100 hours a week.
Across the industry, including in nonunion jobs, pay for some dockworkers can be more modest, around $53,000 a year, according to job site Indeed.
Recently, USMX stated that its latest offer would boost dockworkers’ wages by nearly 50%, triple employer contributions to employee retirement plans, and enhance healthcare coverage, while also preserving existing safeguards against automation.
More from the industry
As the labor landscape shifts, the push for higher wages and job security in the dockworker industry reflects a broader trend of labor movements gaining momentum in various sectors. The ongoing strike is a significant indicator of the growing discontent among workers in essential industries, particularly as inflation continues to erode their earnings.
With automation on the rise, the demand for stronger job security is more pressing than ever. The dockworkers’ push for higher wages is not just about pay; it is also about preserving jobs in an industry that is increasingly at risk of being automated. The implications of this strike extend beyond the ports, as it may inspire similar movements in other sectors facing automation.
As the industry adapts to changing economic conditions, it is essential for labor unions to advocate for their members while also engaging in dialogues with employers about the future of work. The trend of workers demanding more from their employers is likely to continue, and industries may need to rethink their labor strategies to retain a skilled workforce.
The future of dockworkers and similar labor sectors may hinge on the ability to strike a balance between automation and job security. The ongoing negotiations and the outcome of this strike may set a precedent for labor relations in the years to come, as workers increasingly assert their rights in the face of economic challenges.