US East Coast Port Employers File NLRB Complaint Against Union as Strike Approaches, Reports Reuters

By Lisa Baertlein, David Shepardson, and Daniel Wiessner

LOS ANGELES/WASHINGTON – Employers involved in labor contract negotiations at U.S. East and Gulf Coast ports have submitted an unfair labor practice complaint against the International Longshoremen’s Association (ILA), claiming that union leaders are unwilling to resume discussions ahead of a potential strike scheduled for October 1.

The United States Maritime Alliance (USMX) filed the complaint with the National Labor Relations Board (NLRB), citing the ILA’s consistent refusals to return to the bargaining table as the reason for their action.

The current six-year master contract between USMX and the ILA is set to expire on September 30, and both parties are seemingly at an impasse regarding wage negotiations.

The employer group is seeking immediate injunctive relief, which would compel the union to re-engage in bargaining to finalize a new agreement.

While it is not common for employers to lodge such complaints with the NLRB—an independent agency overseeing U.S. labor law, particularly collective bargaining and unfair labor practices—it has occurred in the past. In some instances, the NLRB may pursue a court injunction pending the resolution of the case, a process that could take weeks.

In response, the ILA characterized USMX as an ineffective negotiating partner. "If it weren’t for the ILA engaging in serious and productive negotiations, many local agreements would not have been reached over the past year," the union stated.

Earlier in the week, ILA leader and chief negotiator Harold Daggett revealed that he had turned down USMX’s proposals. "They call me several times each week trying to get the ILA to accept a low-ball wage package," Daggett remarked.

Sources familiar with the negotiations indicate that the ILA is demanding a wage increase of 77%, a figure that the union has called exaggerated. Industry analysts suggest that any wage increase secured will likely exceed the 32% awarded to West Coast longshore workers last year.

Companies dependent on ocean shipping are becoming increasingly anxious about the possibility of a strike by the ILA’s 45,000 members, which could halt operations at 36 ports that manage over half of the U.S. ocean trade in goods such as bananas, meat, pharmaceuticals, auto parts, construction materials, and apparel.

Should a strike occur, it could lead to significant delays and escalated costs, jeopardizing the U.S. economy in the lead-up to the presidential election and further straining global shipping networks, ultimately resulting in higher prices for consumers.

Economists at Oxford Economics have estimated that a prolonged strike could reduce U.S. gross domestic product (GDP) by $4.5 to $7.5 billion, or 0.1% on an annualized basis, for every week it continues.

The potential strike could adversely impact job figures in the October employment report, particularly as the Federal Reserve closely monitors any signs of weakness in the labor market.

The timing of these negotiations is politically sensitive, given that Democratic Vice President Kamala Harris is set to face former Republican President Donald Trump in the upcoming election on November 5.

A White House representative reiterated on Thursday that President Joe Biden does not plan to invoke the Taft-Hartley Act to prevent a strike. "We urge all parties to return to the bargaining table and negotiate in good faith," the official said, adding that senior officials from the White House, Labor Department, and Department of Transportation have been in contact with the negotiating parties to convey this message.