ST. CROIX — The dockworkers strike that began Tuesday along the East and Gulf Coasts following stalled union negotiations has threatened to disrupt the nation’s economy by affecting 36 ports, but the Virgin Islands is not expected to feel an immediate impact, according to officials representing the central government and a major shipping company in the territory.
Members of the International Longshoremen’s Association went on strike for the first time since 1977 Tuesday after their six-year master contract expired with the United States Maritime Alliance Ltd., or USMX.
USMX represents employers of the maritime industry in the ports from Maine to Texas who are responsible for the transportation and handling of cargo shipped to and from the United States.
Although the contract between USMX and ILA members has expired and the union workers went on strike, the shipment of goods to the territory continues.
Currently, the Virgin Islands Department of Licensing and Consumer Affairs does not foresee any immediate impact on the availability of goods for consumers in the territory due to the ongoing strike, according to Licensing and Consumer Affairs Commissioner H. Nathalie Hodge.
“While the situation is being closely monitored, and supply chains may experience minor delays, there is no cause for concern at this moment,” Hodge said in a statement to WTJX.
Considering the continuous flow of goods to Virgin Islands ports, Hodge urged consumers to remain mindful of their purchases and avoid panic buying to prevent any unnecessary, locally-created shortages.
“Ensuring a steady flow of goods is a shared responsibility and avoiding over-purchasing helps maintain stability in the supply chain,” the commissioner stated. “The DLCA will continue to provide updates as needed and remains committed to protecting consumer interests during this time.”
Crowley, a logistics, marine, and energy solutions company founded in 1892 and headquartered in Jacksonville, Florida, has a shipping operation between the U.S. mainland and the Virgin Islands that is not affected by the dockworkers strike, according to David DeCamp, Crowley’s director of Corporate Communications.
“From Crowley's perspective, we’re not signatory to the master agreement in question with the ILA, so our terminals in Jacksonville and Philadelphia, Port Everglades, San Juan and in addition, the Virgin Islands aren’t impacted by this,” DeCamp said by phone. “So, we’re continuing to deliver cargo as normal.”
DeCamp said he confirmed the company’s operations at ports on St. Croix and St. Thomas are not affected by the dockworkers strike after speaking with the management team at Crowley, which has five primary business units — Crowley Logistics, Crowley Shipping, Crowley Fuels, Crowley Land Transportation Services, and Crowley Wind Services. He said Crowley ships a variety of goods to the territory, including groceries, apparel, home appliances, and furniture.
“We continue to monitor this situation because we do know that the supply chain is very important in the islands and the USVI, so we’ll continue to monitor it and track any activities because we know that each and every one of those types of goods are important if you’re counting on it to arrive on time,” DeCamp said.
Tropical Shipping provides shipping services to the Virgin Islands from Canada, Florida and various ports in the Caribbean. When contacted at its corporate office in West Palm Beach, Florida, an employee who declined to provide a name said the company’s operations in the territory were not affected by the strike. A message left for a company spokesperson as well as an email were not returned as of the time of publication of this article.
Although shipments to the territory continue, the manager of a major supermarket on St. Croix said he anticipates a disruption to the supply chain or an increase in the price of goods if the strike continues.
“It’s going to affect us sooner or later, but at the moment we’re good,” Nejeh Yusuf, Plaza Extra East manager, said. “Tropical and Crowley is not affected so we’re OK, but I’m expecting to have a domino effect of some sort, either pricing or inventory.”
Yusuf referred to a photograph he saw showing truck drivers attempting to access a port in Los Angeles, noting that the drivers were sitting on the side of the road while hauling loaded containers. He pointed out the loss of inventory as well as the loss of truck drivers.
“So, now the other drivers are going to have much more demand on them for the ports that are not affected, and then the price is just going to go high because it’s supply and demand now,” Yusuf said.
When tens of thousands of ILA members set up picket lines after midnight at all the major ports on the East and Gulf Coasts Tuesday, ILA President Harold Daggett joined thousands of them outside the gates at Maher Terminal in Port Elizabeth, New Jersey, according to the ILA. The union, in a statement posted on its website Tuesday, said it intends for the demonstrations to continue 24/7 for as long as it takes for USMX to meet the demands of its rank-and-file members.
“We are now demanding $5 an hour increase in wages for each of the six years of a new ILA-USMX master contract,” Daggett said in a statement. “Plus, we want absolute airtight language that there will be no automation or semi-automation, and we are demanding all Container Royalty monies go to the ILA.”
The United States Maritime Alliance, in a statement posted on its website Tuesday, said USMX is proud of the wages and benefits it offers to its 25,000 ILA employees. USMX said it strongly supports a collective bargaining process that allows it to fully bargain wages, benefits, and technology that ensures the safety of workers.
“We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike,” according to the USMX statement. “Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running. We look forward to hearing from the union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”
The International Longshoremen’s Association, in response to the USMX statement, said the statement was another attempt to “distort the facts and mislead the public.” The ILA said it rejected the so-called “nearly 50% wage increase” because it fails to adequately address the demands of its members, adding that many ILA members operate container-handling equipment for a mere $20 an hour, while the minimum wage in some states is $15. The ILA further noted its members endure a six-year wage progression before they can even reach the top wage tier, regardless of how many hours they work or the effort they put in. The union stated that USMX also overlooks the fact that two-thirds of its members are constantly on call, with no guaranteed employment if no ships are being worked. The union noted that Container Royalty is another critical issue.
“These funds were intended to be a wage supplement paid out to our members, not to be shared with employers,” according to the ILA statement. “The ILA demands 100% of its Container Royalty monies, along with other jurisdictional demands to ensure our members receive what is rightfully theirs.”
