A chaotic supply chain hasn’t kept unionized logistics workers from seeking (and securing) big salary bumps over the last few years — with US rail workers winning a 24% raise, UPS employees receiving a 55% pay boost, and West Coast port workers landing a 32% salary hike. Now, union workers at East and Gulf Coast ports are lining up for their own big pay increase — just in time for the busy holiday season.
- As many as 47K organized laborers, represented by the International Longshoremen’s Association (ILA), could go on strike if a new deal isn’t reached by Oct. 1, when their six-year contract with the United States Maritime Alliance ends.
- Under the previous contract, union workers received an 11% pay rise over six years, but with inflation growing 24% over that time and West Coast port wages outpacing ILA wages, workers are expecting significant pay hikes.
Forward-looking: Reports suggest the ILA might ask for a 77% wage increase in the new contract — a large raise aimed at bringing East and Gulf Coast workers in line with their West Coast counterparts. With that demand, a strike is a real possibility. National Tree Company CEO Chris Butler is concerned, estimating that 15% of goods could be stranded if a strike occurs. As a result, companies are ordering holiday inventory early, hoping to get shipments through the ports before the potential strike. Others are redirecting traffic through West Coast ports, but experts warn that a strike could cause widespread disruptions, long delays, and higher freight costs.
