According to Bloomberg Law, union contracts negotiated in 2023 provided workers with a national average of 6.6% in first-year wage increases, the highest average pay raise for any year since Bloomberg Law began tracking union wage settlements in 1988. When signing bonuses and other incentive payments were added to the calculations, the national average for first-year wage increases in 2023 was 7.3%, also a record high, according to Bloomberg Law’s latest Quarterly Union Wage Data report.
For American Maritime Officers members, the average first-year increase for deep-sea commercial contracts negotiated so far in 2023 and 2024 is 17.5%. The AMO average for first-year pay increases exceeds the national average of 7.3% published by Bloomberg Law by 10.2%.
AMO deep-sea commercial contracts negotiated in 2023 and 2024 provide total average pay increases of 26.4% over the life of an agreement. The total average pay increases over the life of an agreement based upon the length of the agreement are as follows:
- 18.42% average for one-year agreements
- 30.43% average for two-year agreements (over the life of an agreement)
- 22.40% average for three-year agreements (over the life of an agreement)
- 38.60% average for five-year agreements (over the life of an agreement)
For AMO inland waters (tug) contracts negotiated in 2023 and 2024, the average first-year pay increase is 12%, exceeding the national average by 4.7%.
Only one Great Lakes contract has been negotiated so far in 2024. This contract with a tug-barge operating company provides an average first-year pay increase of 10%, exceeding the national average by 2.7%.
AMO’s averages are calculated based on wage and vacation pay increases. The averages above do not include many other contractual gains, such as additional turnover pay resulting from shorter rotations, pay for physicals and training, or other similar items that result in dollars on a member’s W-2 at the end of the year.
There are many additional improvements, which vary from contract to contract. All of these increases add to the total labor cost we negotiate with the company and can include such things as door-to-door travel expenses, better airline tickets, and increased 401(k) matching contributions.
The Bloomberg Law report is available online.
Danny Robichaux
National Executive Vice President