How Much Do Dockworkers Make? A Look at Their Salaries and Struggles

Dockworkers, also known as longshoremen, play a crucial role in the smooth running of U.S. ports, particularly along the East and Gulf Coasts. Recently, roughly 25,000 dockworkers walked off the job, demanding better pay and protection against job automation. This marks the first strike in nearly 50 years, as members of the International Longshoremen's Association (ILA) rally for “the kind of wages we deserve,” according to their president, Harold Daggett.

In this article, we'll break down the dockworkers' wages, their demands, and what their jobs look like on a day-to-day basis.

Why Are Dockworkers Striking?

The dockworkers are pushing for a significant wage increase. Their union, the ILA, represents workers in ports along the East and Gulf Coasts, and they believe that their current pay no longer reflects the reality of today's economy. They point to the high inflation rates that have eaten away at their income under their expired contract with the United States Maritime Alliance (USMX).

This contract, which governed the wages and working conditions for the dockworkers, expired recently. The ILA claims that while the industry itself is doing well, their members continue to feel the squeeze from inflation. The union’s statement notes that many longshore workers are being “crippled by inflation” because of the unfair wage packages offered by the USMX.

What Do Dockworkers Currently Make?

For longshoremen, pay varies based on years of experience. The now-expired contract set the starting wage at $20 per hour. After two years, this would increase to $24.75 per hour, and after three years, it would rise to $31.90. Workers with more than six years on the job could earn as much as $39 per hour.

This means that a worker earning the top-tier wage of $39 per hour would make just over $81,000 annually. However, many dockworkers take on extra shifts, working long hours to increase their earnings. In fact, according to a 2019-2020 report from the Waterfront Commission of New York Harbor, around one-third of longshoremen in that region made over $200,000 per year by working overtime.

While the highest earners can make substantial incomes, this requires significant overtime, with some workers logging up to 100 hours a week. For most dockworkers, their salary can exceed $100,000, but this usually includes a considerable amount of overtime. Those working nonunion jobs, however, can make far less, with some dockworkers earning around $53,000 a year.

What Are Dockworkers Asking For?

The ILA is demanding a major wage increase, pushing for a 77% raise over six years. This would translate into a $5 per hour raise each year of the contract. If these demands are met, the workers would start earning $44 per hour in the first year, with their pay rising to $49 in the second year, and reaching up to $69 per hour by the final year of the contract.

This proposed raise is significant and would dramatically change the financial landscape for these workers. The union argues that these increases are necessary to keep up with the rising costs of living and inflation, which have made it harder for dockworkers to stretch their paychecks.

Harry Katz, a professor of collective bargaining at Cornell University, believes that the dockworkers hold a lot of power in these negotiations. He points out that dockworkers are essential workers who are not easily replaceable, and that the ports themselves are performing well. This strong bargaining position may help the dockworkers secure a favorable deal.

What Is the Latest Offer from Employers?

Late Monday, the USMX made a new offer to the dockworkers. The proposal includes a nearly 50% wage increase over the course of the contract, along with tripled contributions to employee retirement plans and enhanced healthcare coverage. The offer also promises to maintain safeguards against automation, which is another key issue for the dockworkers.

Automation poses a significant threat to dockworkers' jobs, and the ILA has been firm in its stance against it. The union is fighting to ensure that the workers’ roles are not replaced by machines in the future, which is why they are also pushing for stronger protections in this area.

While the offer from USMX represents a significant improvement from the previous terms, it remains to be seen whether it will satisfy the workers’ demands. The union is standing firm, emphasizing that their members deserve higher wages and more robust protections to ensure their livelihoods.

Conclusion

The strike by dockworkers at U.S. ports highlights the broader struggle for fair wages and job security in the face of inflation and technological advancements. While some longshoremen can earn high wages by working long hours, many feel that their base pay is insufficient given the rising cost of living.

As the negotiations between the ILA and the USMX continue, the outcome of this strike could have a lasting impact on the industry. With dockworkers holding a key role in the operation of U.S. ports, their demands for better pay and job protections are likely to influence future labor discussions across the country. For now, the dockworkers are standing strong, advocating for the wages and protections they believe they deserve.