Wilmington port hit with labor strike

October 1, 2024

WILMINGTON — The Port of Wilmington has seen some impact as 45,000 workers went on strike at 36 ports across the Atlantic and Gulf Coasts starting on Tuesday following a breakdown in contract negotiations between the union and the United States Maritime Alliance.

The International Longshoremen’s Association (ILA) Local 1694 includes around 200 members across the ports in Wilmington and Philadelphia. They joined other members at midnight on a strike that would include 24/7 demonstrations until demands are met, according to the ILA in a prepared statement. The union represents thousands of men and women who move cargo from shipping vessels that stop in the marine terminals around America.

The ILA has been negotiating for a $5 per hour pay increase for union members over six years, with the top salaries spanning $39 per hour to $69 over the course of the contract. The United States Maritime Alliance, which represents major shipping lines owned by international companies, as well as terminal operators and port authorities, has maintained that the union is negotiating in bad faith, and the parties have not met since June, according to CNN.

Another key issue at the heart of the dispute is automation, as ports around the world are using machines to track and move cargo. But the ILA has maintained that if ports lean more on automation down the road, it could be at the expense of more jobs.

In the middle of the strike are billions of dollars in consumer goods, including more than two-thirds of the machines that come through the East Coast ports and half of all textiles and cars. The biggest impact, however, may include perishables — and the Port of Wilmington is a prime stop for fresh fruits.

Delaware’s port handled close to 1.5 million tons of bananas and plantains in 2018, according to industry news website Supply Chain Drive. The Port of Wilmington is a strong leader in handling fresh fruit imports. It holds 800,000 square feet of cold storage there on the dock for wares which require a temperature-controlled atmosphere while on the journey to the grocery store.

Enstructure leadership said in a prepared media statement that the Port of Wilmington “recognizes and respects” the activities associated with the contract negotiations between ILA and the United States Maritime Alliance.

Enstructure, which took over Port of Wilmington operations in August 2023, also said that it has communicated anticipated impacts to customers and will provide regular updates on the strike.

“We will continue to closely monitor the ongoing contract negotiations between the ILA and [United States Maritime Alliance], and we hope there is a resolution to return to business as usual as quickly as possible,” the statement reads.

In advance of the strike, Enstructure President of Mid-Atlantic President Bayard Hogans told the Diamond State Port Corporation Board last week that the port operator offered customers additional gate hours.

“We really want to support each party and their goals, and we hope they can come to an amicable solution,” Hogans said during the meeting before the stroke. “If they don’t come to an agreement before the meeting, we’re working to ensure there is a smooth process.”

New Castle County Executive and governor candidate Matt Meyer met with dozens of port workers in Wilmington last night in a sign of solidarity.

“These union workers are the backbone of our economy. They keep goods moving, businesses running, and Delaware connected to the global marketplace. It is unacceptable for them to face wage stagnation, and uncertainty about their futures,” Meyer said in a prepared statement. “As governor, I will fight for policies that ensure workers are treated with the respect and dignity they deserve.”

The New York Times reported that analysts at JPMorgan Chase & Co. predict the strike could cost the economy $5 billion per day.