The United States Maritime Exchange (USMX) has stated that it has proposed a nearly 50% increase in dockworkers' wages in an effort to resume negotiations with the International Longshoremen's Association (ILA) and avert a major strike at East Coast and Gulf Coast ports.
In a statement, the USMX, representing marine terminal operators and shipping companies, said that within the last 24 hours, the organization has bargained with the dockworkers' union over wage issues.
The statement read: "USMX improved its offer and asked for an extension of the existing master contract."
A spokesperson for the dockworkers' union said he was unaware of such a proposal. The ILA, representing 45,000 port workers, has been threatening that if a new agreement cannot be reached between labor and management before the contract expires at the local time of September 30, its workers will go on strike at container ports along the East Coast and the Gulf Coast starting from October 1.
According to informed sources, White House officials met with USMX management on Monday, urging them to resolve the deadlock fairly and promptly.
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Negotiations have been at an impasse since the union called off talks in June, with both sides still having significant differences on issues such as wages and automation disputes.
The USMX stated in its statement: "Our proposal is to increase wages by nearly 50%." The proposal also increases employers' contributions to employee retirement plans and will enhance healthcare options.
One of the biggest issues in the negotiations is the automation of container terminals.
USMX stated that the current offer includes automation clauses identical to those in the current contract and the previous contract extended this summer. The union has expressed that they want stricter restrictions on such technology.
It is reported that analysts at JPMorgan estimate that a strike would cost the U.S. economy about $5 billion per day, as the transportation of food, retail goods, and other products at busy terminals including New York, Baltimore, and Houston would be disrupted.
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