The three-day dockworker strike that threatened to stall the American economic system was a dramatic victory for 45,000 East Coast longshoremen, who now stand to gather 60% pay hikes by 2030.
The tentative deal, between maritime shippers and the Worldwide Longshoremen’s Affiliation, lifts high pay to $45 an hour subsequent 12 months for laborers on the New York-New Jersey docks and at greater than 30 different ports from Maine to Texas. At that price, dockworkers placing in a 40-hour work week would make as much as $93,600 a 12 months.
But, even with that substantial improve, pay for rank-and-file union members will lag far behind compensation for a cadre of Worldwide Longshoremen’s Affiliation executives who make tons of of hundreds a 12 months whereas having fun with lush journey and leisure advantages that embody New York Yankees tickets, limousine service, and memberships on the New York Athletic Membership.
In 2023 alone, thirty high executives with the union categorised below its headquarters in North Bergen — together with 25 vice presidents with annual pay reaching $554,000 every — had been paid greater than $9 million in wage and different compensation, in accordance with U.S. Division of Labor stories reviewed by the New Jersey Monitor.
The stories present that a number of high union officers are paid for holding a number of government positions concurrently, together with high-paying posts as “emeriti” for previous service in union locals. Many relations of main executives have discovered a spot on ILA’s payroll, which final 12 months was funded by $38 million in union member dues and different charges. The union final 12 months even employed a former member who served jail time after a federal fraud conviction.
ILA President Harold J. Daggett, a buddy and political ally of New Jersey Gov. Phil Murphy, obtained greater than $855,261 in compensation final 12 months for his management duties. The federal filings present Daggett was paid an extra $194,155 as “president emeritus” of ILA Native 1804-1.
Daggett’s son Dennis was paid $785,877 final 12 months for his twin management roles of Native 1804-1 president and ILA government vp. One other Daggett son, John Daggett, was paid $642,631 for 2 government positions, vp of the ILA Atlantic Coast District and vp of Native 1804-1.
Daggett’s daughter, Lisa Daggett Bess, made $210,383 because the union’s “political affairs director.”
Union critics and regulation enforcement officers, who’ve prosecuted waterfront rackets on the docks for many years, say the eye-popping salaries and spending replicate the rising energy of a single household over a significant American labor union. In Harold Daggett’s 13 years as union president, they level out, the ILA has hit new peaks of swagger and political affect.
Daggett, they level out, has lengthy been among the many highest-paid union leaders within the nation, his pay price dwarfing that of counterparts like United Auto Staff’ Shawn Fain, who makes about $200,000, and Worldwide Brotherhood of Teamsters head Sean O’Brien, who reportedly made a $250,352 wage final 12 months.
“The union cash is solely a piggy financial institution for Harold and his household,” stated Walter Arsenault, a former prosecutor who spent 15 years monitoring crime on the docks as head of the now-defunct Waterfront Fee of New York Harbor.
The 70-year-old bi-state company went out of enterprise final 12 months after New Jersey withdrew, arguing that it had outlived its usefulness and that its aggressive policing was hurting enterprise.
“The very fact is that there are few checks and balances on the actions of the union and their leaders,” Arsenault stated. “Harold Daggett threatens to shut the ports and some days later comes again with a 60% pay hike. With that sort of energy, dues-paying union members don’t care how a lot he pays himself or his household. They assume he’s the best.”
Daggett declined to be interviewed. However an ILA legal professional defended the union chief’s wage, stating that Daggett’s compensation has been voted on and accepted by ILA membership and displays his “exceptional” efficiency profitable concessions for staff and boosting union funds total.
“When Harold took over as ILA President in 2011, the union was going through important monetary difficulties,’’ stated legal professional Michael Critchley in a written assertion to New Jersey Monitor. “Beneath his management, the ILA has not solely recovered however thrived, with funds stronger than ever due to his sharp enterprise acumen.”
In accordance with Critchley, the union’s internet property have elevated by an inflation-adjusted 307% throughout Daggett’s tenure whereas his pay will increase have amounted to solely about 1% a 12 months.
“The ILA has flourished below his steerage,’’ he stated.
Placing dockworkers at Maher Terminals in Elizabeth on Tuesday, Oct. 1, 2024. (Picture by Mark Bonamo for New Jersey Monitor)
Daggett, 78, is a fourth-generation longshoreman from Sussex County who has taken a bare-knuckled method towards maritime shippers and the federal prosecutors who’ve unsuccessfully sought to implicate him in mob-driven waterfront rackets. Beneath Daggett, the union has garnered the enthusiastic backing of key political leaders, most notably President Biden and U.S. Sen. Bernie Sanders, who supported the longshoremen’s strike earlier this month even because it threatened to stall the economic system.
The proprietor of a multi-million greenback mansion and, at one time, a 76-foot yacht referred to as “Obsession”, Daggett assaults the delivery strains and port operators as “cash loopy” profiteers. Earlier than the strike, Daggett and his high lieutenants posted images of themselves on social media toting placards that learn “Revenue Over Individuals is Unacceptable.”
In a profanity-laced harangue final 12 months on the ILA’s nationwide conference in Hollywood, Florida, Daggett gave truthful warning that he meant to cripple port commerce if his calls for for extra money and fewer automation weren’t met.
“Mark my phrases! There’s going to be an explosion,” Daggett stated. “Somebody should take the bull by the horns, and that’s me … Don’t f–ok with the maritime unions world wide. We’ll shut you down!”
Daggett’s speech was adopted the subsequent night time by a sympathetic keynote deal with from Murphy, who saluted Daggett as a “pricey buddy” and “companion in rising the New Jersey economic system.”
Federal filings present the union spent greater than $6 million to stage the frilly conference at The Diplomat Seaside Resort, a resort that payments itself as “an oceanside paradise in sunny south Florida.” Spending for the gala included greater than $200,000 on airline tickets, some $45,000 on limousines, and greater than $500,000 on merchandise and advertising supplies for conventioneers.
A Maryland firm employed to movie the occasion and supply video companies was paid $1.3 million. Forty union dignitaries who served as sergeants at arms through the four-day assembly obtained greater than $300,000 in funds.
Amongst them was Paul S. Moe, a former dock foreman with the ILA, who obtained a two-year federal jail sentence following a 2018 conviction for fraudulently accumulating $500,000 a 12 months (he served three months). Prosecutors stated Moe labored as little as eight hours every week and spent the remainder of his time fishing in his boat off Atlantic Highlands or vacationing in Aruba.
Final July, Moe obtained $10,000 as a sergeant at arms through the ILA conference. His son, Paul Moe Jr., received $6,000 for sergeant obligation as properly, federal information present.
Beneficiant spending by the ILA final 12 months was not restricted to Florida. Amongst different union bills: $4.6 million in authorized charges, $906,000 for “lobbying and political actions,” $44,609 to the Grand Opryland Resort in Nashville, $31,958 to KLM Royal Dutch Airways and Scandinavian Airways, and $199,992 to retired U.S. District Courtroom Choose Dennis Cavanaugh for his function as “ILA Moral Practices Officer.”
The union additionally spent $131,520 for Yankees “stadium tickets” final 12 months and $145,000 in 2022, when union members additionally paid $20,000 in “membership” charges on the New York Athletic Membership.
Beneath the tentative wage deal introduced Oct. 3, the ILA and maritime industries agreed to increase the union’s current six-year work contract to Jan. 15. Among the many points nonetheless to be resolved is using automated techniques to deal with port cargo. Daggett guarantees to proceed working towards the brand new applied sciences.
“We is not going to settle for the lack of work and livelihood for our members as a consequence of automation,” the union stated final week. “Our place is evident: the preservation of jobs and historic work capabilities is non-negotiable.”
Practically $300 billion in cargo is dealt with yearly within the New Jersey and New York port, which now could be the second busiest within the U.S.
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