How Much Are Striking Dockworkers Taking Home? The Answer Will Blow You Away!

Thousands of dockworkers across the East and Gulf Coasts are fighting for their livelihood as they strike for better pay and job security. Approximately 25,000 workers, represented by the International Longshoremen’s Association (ILA), are standing firm against the increasing threat of job automation and pushing for significant wage increases.

The strike, which began Tuesday, marks the first major walkout in nearly half a century. ILA President Harold Daggett voiced the workers’ frustration, stating in a social media post that the workers are seeking “the kind of wages we deserve.” The longshoremen argue that their paychecks have been severely impacted by inflation during their expired labor contract with the United States Maritime Alliance (USMX), which represents the interests of ports and ocean carriers.

As profits for the maritime industry have surged, the dockworkers claim that they have been left behind. The union emphasized in a statement that “longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.” This economic strain is central to their demands, as they push for wage increases that reflect both inflation and the vital role they play in keeping the ports operational.

Pay Disparity Between Coasts

Unlike their counterparts on the West Coast, who secured significant wage hikes earlier this year through a different union, the striking dockworkers along the East and Gulf Coasts are paid considerably less. The ILA’s previous contract, which expired on Monday, outlined a starting pay of $20 per hour for new workers. After two years, that rate increased to $24.75, and after three years it rose to $31.90. Workers with at least six years of experience earned up to $39 per hour.

The ILA is now demanding a 77% wage increase over the next six years, which translates to about a $5 per hour raise each year. Under the new proposal, dockworkers would see their hourly wages jump to $44 in the first year, $49 in the second, and ultimately reach $69 per hour by the final year of the contract.

Experts like Harry Katz, a professor at Cornell University who specializes in collective bargaining, believe the dockworkers hold a strong position in the negotiations. “I think this work group has a lot of bargaining power,” Katz said. “They’re essential workers that can’t be replaced, and also the ports are doing well.”

Dockworker Salaries: A Wide Range

At the top end, dockworkers earning the highest hourly wage of $39 could see their annual salary reach over $81,000. However, this figure can significantly increase for those willing to work overtime. For instance, in a 2019-2020 report by the Waterfront Commission of New York Harbor, about one-third of local longshoremen earned more than $200,000 per year due to extended hours and extra shifts.

While it’s possible for longshoremen to exceed $100,000 annually, this often requires substantial overtime. Daggett, the ILA president, noted that some of these higher earners work up to 100 hours a week to achieve these figures. In contrast, non-unionized dockworkers often face lower pay, with some earning as little as $53,000 annually, according to Indeed, a popular job listing site.

The Employer’s Offer

As the strike unfolded, USMX attempted to address the union’s demands with a new proposal late Monday. The latest offer includes nearly a 50% wage increase, along with a threefold increase in employer contributions to employee retirement plans. Additionally, the offer would enhance health care benefits while maintaining safeguards against automation, a key concern for workers.

Despite these concessions, the ILA remains firm in its stance, pushing for more substantial changes to the compensation structure. The outcome of this strike could have significant ripple effects not only for the longshoremen but also for the broader maritime industry, which relies heavily on the smooth operation of ports across the country.

As negotiations continue, the striking dockworkers are standing their ground, determined to secure better pay and ensure their jobs aren’t automated away in the near future.