Amid the ongoing strike by dockworkers at East and Gulf Coast ports, a significant focus has shifted to the wages these workers receive and their demands for higher pay. Roughly 25,000 members of the International Longshoremen's Association (ILA) walked off the job, marking the first strike of its kind in nearly 50 years.
The strike has drawn national attention, particularly as it comes at a time when inflation continues to squeeze household budgets across the U.S., and when dockworkers claim their wages have not kept pace with rising living costs.
At the heart of the strike is the issue of wages. The ILA has demanded a substantial wage increase, asking for a 77% pay rise over the course of their proposed contract. According to ILA President Harold Daggett, the dockworkers are fighting for "the kind of wages we deserve." Daggett added that the union members have been operating "multi-million-dollar container-handling equipment for a mere $20 an hour," arguing that this wage is insufficient given the high cost of living in many port cities and the essential nature of their work.
Under the now-expired contract, dockworkers started at $20 per hour, with wages rising to $24.75 after two years and reaching $31.90 by the third year. For workers with six years or more experience, the top wage stands at $39 an hour, equivalent to roughly $81,000 per year. However, many dockworkers take on substantial overtime to increase their earnings, with some working up to 100 hours per week. These extra hours can push annual salaries well above $100,000, with about one-third of longshoremen in New York and New Jersey making $200,000 or more, according to a report from the Waterfront Commission of New York Harbor.
Despite these earnings, ILA workers argue that their wages lag behind their counterparts on the West Coast, who negotiated a significant pay increase in 2023. The ILA's current demand for a 77% raise would see wages rise to $44 per hour in the first year of the new contract, increasing to $69 per hour by the final year. This proposal was met with resistance from the United States Maritime Alliance (USMX), which represents port operators and ocean carriers. USMX has offered a smaller increase of nearly 50%, a proposal the union rejected as inadequate.
In a statement released Monday, the ILA accused USMX of profiting handsomely while offering an unacceptable wage package. "The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject," the union said. They also highlighted the broader issue of automation, which threatens to reduce the need for human labor in ports, and called for protections against the risk of being replaced by machines.
Economists and labor experts suggest that the dockworkers are in a strong position to negotiate. According to Harry Katz, a professor of collective bargaining at Cornell University, dockworkers have significant bargaining power because they are essential to the functioning of the nation's supply chains. "They're essential workers that can't be replaced, and also the ports are doing well," Katz noted, adding that the industry's profitability gives the workers leverage in the negotiations.
While top earners among the dockworkers can bring in substantial incomes through overtime, others are making much more modest wages. The average annual salary for dockworkers in the U.S., according to job site Indeed, is around $53,000. Meanwhile, ILA President Harold Daggett himself earned $728,694 in 2023, with an additional $173,040 from his role as president emeritus of the mechanics local chapter at Port Newark, New Jersey. His son, Dennis Daggett, who holds leadership roles within the union, earned a total of more than $700,000 last year.
The strike has led to significant disruptions at 14 ports across the East and Gulf Coasts. However, West Coast ports, where a different union represents dockworkers, remain unaffected. The West Coast union successfully negotiated wage increases for its members in 2023, setting a precedent that the ILA is now looking to follow.
