A potential strike may shake the economy on the brink of the election, largely hinges on one feisty union leader.
Harold Daggett, the leader of the International Longshoremen's Association, has expressed strong criticisms of the Biden administration.
The decision to strike rests primarily with the tough and unpredictable head of the dockworkers union, Harold Daggett, a New Yorker sometimes accused of links to organized crime. Recently, Daggett has criticized the Biden administration’s labor record and provocatively questioned the president's support for his members.
In a video post, Daggett warned that if the union’s demands aren't met, an economic impact would follow. He outlined a potential timeline: during the first week, the strike would dominate headlines; by the second week, car dealerships would begin layoffs; by the third week, malls would start closing; eventually, construction workers would lose jobs.
“In today’s world, I’ll cripple you,” he stated recently. “I will cripple you.”
Though the economic damage may not occur as swiftly or severely as he predicts, Daggett's resolve is clear.
For over a decade, Daggett has served as the president of the International Longshoremen’s Association (ILA), representing the tens of thousands of workers who load and unload cargo at East Coast and Gulf Coast ports.
The union's constitution gives Daggett the power to call a strike without requiring a vote from union members. He has declared his intention to do so if a new six-year master contract with the shipping industry is not reached by the end of September.
Daggett rarely grants public interviews and declined to speak for this article. Instead, the ILA typically shares its messages via friendly platforms, including Facebook and YouTube.
The likelihood of a strike is growing, posing a significant risk to the supply chain, which could undermine Vice President Kamala Harris' optimistic economic narrative. The strike's initiation might coincide with the upcoming vice-presidential debate.
While President Joe Biden takes pride in being a pro-union president, Daggett, much like the Teamsters’ leader who has been a thorn for Democrats, appears unconvinced.
According to the ILA's biography of Daggett, he comes from a lineage of union members. Born in New York and residing in New Jersey—home to the largest cargo port on the East Coast—he climbed the ranks of a powerful New Jersey local union and assumed leadership of the ILA in 2011.
However, court records from federal investigations have alleged that Daggett’s ascent within the union was aided, at least in part, by connections to organized crime.
During the pandemic, while many workers remained at home, Daggett's members kept working. Shipping companies amassed significant profits and awarded large bonuses to their executives, prompting Daggett to feel his laborers have not received their fair share.
Now he seeks a contract that secures substantial raises for his members and prohibits the use of robots in longshore jobs.
While industry insiders suggest Daggett's demands approach 80% raises over six years, the union disputes this and claims the actual figure is closer to 60%.
Those surprised by these demands have likely not been paying attention. More than a decade ago, Daggett expressed a wish for every dockworker to earn $400,000 annually.
Though the industry is limited—due to decades of automation—its power stems from the union's representation of workers at a critical juncture in international trade, where jobs are highly coveted and lucrative for blue-collar workers.
Data from 2020 indicates over 600 longshore workers in New York and New Jersey earned more than a quarter million dollars, as reported by a bi-state agency overseeing the port.
Daggett himself is well compensated; he received $728,000 last year from the ILA and an additional $173,000 as the president emeritus of local 1804-1, according to Department of Labor filings.
The United States Maritime Alliance, representing the port industry, has accused Daggett's team of failing to negotiate effectively. The ILA countered, claiming this characterization is misleading and that there have been "multiple communications" in recent weeks, though they find the industry's wage offer “unacceptable.”
Recently, Daggett has seemingly distanced himself from potential allies, including the Democratic administration and key port-state politicians.
He has openly criticized Biden, refrained from soliciting assistance from New Jersey Gov. Phil Murphy to avert a strike, and condemned a deal brokered last year by a union representing West Coast dockworkers that he viewed as inadequate.
Daggett’s strong rhetoric reflects his opposition to automation, which he defines generally as any technology that would replace human jobs.
“Someone has to get into Congress and say, ‘Whoa, timeout, this world is going too fast for us, machines got to stop,’” Daggett urged in a recent interview. “Yes, we’re getting smart kids out of MIT and all these places. Yeah, they are all brilliant, but what good is it if you’re going to put people out of work? Who is going to support their families, machines? Machines don’t have families.”
Daggett expressed frustration with Biden for the President's role in last year’s negotiations that avoided a strike on the West Coast. Biden had sent officials to facilitate an agreement that included 32% raises for dockworkers, but did not include what Daggett sees as adequate protections against automation.
“Where is the president of the United States? He’s not fighting for us,” Daggett asserted in another video. “In L.A., he told the union, hurry up and get a contract. That’s the mentality they have. They don’t even know what the hell they’re doing today. Well, I know what I’m doing, I’m going to save everybody’s job.”
While this narrative contrasts with the West Coast union's positive view of Biden, it reflects Daggett's perspective in a changing landscape where he now seems to be the more strike-prone leader.
No president has invoked the strike prevention powers granted by the Taft-Hartley Act since 2002, when President George W. Bush used them to resolve an impasse with West Coast dockworkers amid military preparations for Iraq.
In comparison, East Coast dockworkers have not engaged in a strike since 1977.
This historical context may explain why Daggett's strike threat initially seemed unlikely to some, despite his prior warnings over the months. In a July 2023 address to ILA members, Daggett issued a direct ultimatum to shipping giant Maersk, insisting they negotiate or face consequences.
“Wake up, world,” he stated. “I have a message for Copenhagen, that’s the home of Maersk: Don’t fuck with the maritime unions around the world. We will shut you down!”
Despite earlier statements from Maersk’s CEO deeming a strike “highly unlikely,” the situation has evolved rapidly. The company recently announced plans to increase cargo prices at East Coast ports in anticipation of potential disruption.
Some observers suggest that Daggett's motivations extend beyond securing a better deal for his members to considerations of legacy and succession. His son, Dennis Daggett, now leads the influential New Jersey local and serves as ILA’s executive vice president.
Sources familiar with industry dynamics indicate Harold Daggett may hope to pave the way for his son to succeed him as union head; negotiating a favorable contract could enhance those prospects.
The Biden administration has yet to employ Taft-Hartley powers and has no plans to do so, a significant win for the ILA since such a threat could diminish Daggett's negotiating leverage.
If Daggett expresses gratitude, it hasn't been apparent.
In a recent video, he criticized Biden's actions following the Baltimore bridge collapse, claiming he'd received minimal government support. “I never got no help from the government,” Daggett remarked.
Both the White House and Maryland Gov. Wes Moore’s office disputed Daggett's version of events.
“The president is proud of his support for port workers,” Biden spokesperson Robyn Patterson stated, emphasizing efforts to expedite the reopening of the Port of Baltimore after the bridge incident and ensure assistance for impacted workers.
In addition, Carter Elliott, spokesperson for Governor Moore, noted collaboration with a union local and initiatives providing over $13 million in direct aid to more than 3,300 temporarily-displaced port workers.
Throughout his career, Daggett has faced scrutiny over allegations of mob connections influencing his rise. Two decades ago, federal prosecutors accused him of benefiting from a mob conspiracy that assisted his election as ILA head, though he was acquitted.
During the trial, Daggett maintained his innocence, asserting his rise resulted from worker support. He recounted an incident in which a hitman had threatened him over plans to relocate the union. The key witness against him, a co-founder of a gang, was deemed unreliable by the jury due to his inability to hear.
One co-defendant in the case disappeared during the trial and was later discovered dead outside a New Jersey diner, also acquitted but deceased.
Despite these events, prosecutors continued to label Daggett as “an associate of the Genovese family” in an ongoing related racketeering case.
In the years since, Daggett and the ILA successfully advocated for the dissolution of a bi-state agency designed to monitor ties between the union and organized crime.
Navid Kalantari contributed to this report for TROIB News