East Coast Dockworkers Secure 60% Pay Rise Amid Union Leaders' Controversial Compensation
ICARO Media Group
### East Coast Dockworkers Win Massive Pay Hike but Union Leaders' Earnings Raise Eyebrows
In a notable victory for East Coast longshoremen, a three-day strike involving 45,000 dockworkers has resulted in an agreement to boost their pay by 60% by 2030. The tentative deal, struck between maritime shippers and the International Longshoremen's Association (ILA), will see top pay rise to $45 an hour next year for workers on the New York-New Jersey docks and other ports spanning from Maine to Texas. This would bring annual earnings of up to $93,600 for those working a standard 40-hour week.
However, the substantial pay increase for the rank-and-file members presents a stark contrast to the compensation packages enjoyed by top ILA executives. According to U.S. Department of Labor reports reviewed by the New Jersey Monitor, thirty senior union officials were collectively paid over $9 million in salary and other compensation in 2023 alone. This elite group includes 25 vice presidents each earning up to $554,000 annually.
Among the highest earners are members of ILA President Harold J. Daggett’s family. Daggett himself took home more than $855,261 last year, with an additional $194,155 for his role as "president emeritus" of ILA Local 1804-1. Daggett's sons, Dennis and John, were compensated $785,877 and $642,631 respectively for their dual executive positions within the union. Additionally, Daggett's daughter, Lisa Daggett Bess, earned $210,383 as the union’s "political affairs director."
Critics argue that these high salaries and benefits reflect the growing power and influence of the Daggett family within the ILA. They highlight the use of union funds for luxurious perks such as New York Yankees tickets, limousine services, and memberships at the New York Athletic Club. Harold Daggett’s leadership has seen the union's net assets grow by an inflation-adjusted 307% since 2011, while his pay has increased only about 1% annually, according to union attorney Michael Critchley.
Despite the apparent success of Daggett's tenure, union critics and law enforcement point to a lack of transparency and question the allocation of union funds. Former prosecutor Walter Arsenault, who spent 15 years tracking dock-related crimes, described the union's finances as a "piggy bank" for the Daggett family and emphasized the lack of checks and balances on union activities.
The ILA's lavish spending was not confined to executive salaries. The union spent over $6 million on a national convention at The Diplomat Beach Resort in Florida, including expenditures on limousine services, airline tickets, and $1.3 million for video services. Additionally, financial statements reveal significant payments for lobbying, legal fees, and even entitlements for individuals with criminal records, raising further questions about financial governance within the ILA.
As the union gears up for dealing with future challenges, such as adopting automated systems in port operations, Harold Daggett remains firm on his stance against job losses due to automation. The preservation of jobs and historical work functions, according to Daggett, is non-negotiable. This insistence on maintaining traditional labor roles continues despite the looming threat of automation potentially revolutionizing port operations.
With the New York-New Jersey port handling nearly $300 billion in cargo annually, the stakes remain high, and the next steps in negotiations are eagerly watched by all stakeholders.