Thousands of port employees are poised to walk off the job in a port strike that could cost the U.S. economy billions of dollars a day and hurt businesses, workers, and consumers across the country.
The strike could begin after the clock strikes midnight on Tuesday, Oct. 1, if the parties fail to reach an agreement.
This comes after talks over wages between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) appeared set to remain deadlocked.
The impasse means that 45,000 dock workers from Maine to Texas are preparing to walk off the job in 36 locations at 14 East and Gulf Coast ports, including 10 of the busiest in North America.
The ILA is the largest union of maritime workers in North America, according to its website. The union represents 85,000 longshoremen who load and unload ships at ports on the Atlantic and Gulf Coasts, on major rivers, and in the Great Lakes region, as well as in Puerto Rico, Eastern Canada, and the Bahamas.
The Issue
A strike at ILA ports seems more likely as time is running out to settle a new agreement with USMX.
The current contract expires on Sept. 30, and no further negotiations have been scheduled.
“A sleeping giant is ready to roar on Tuesday, Oct. 1, 2024, if a new Master Contract Agreement is not in place,” ILA President Harold J. Daggett said in a statement. “My members have been preparing for over a year for that possibility of a strike.”
The ILA has called for wage increases to compensate for inflation, along with job security guarantees to protect workers against automation and artificial intelligence.
While the ILA had not publicly released specific details of its demands, it said that wages for ILA workers had risen 2.02 percent per year, on average, over the last 30 years.
“Many years that percentage was zero, including the years 1993-1996 when ILA longshore workers saw no increases in wages,” the ILA said. “This kind of treatment in negotiations is unacceptable for the ILA deepsea longshore workforce of 2024.”
The ILA has also accused the USMX of leaking details of its demands.
Meanwhile, the USMX said that it was proud of its current offer, which it said included “industry leading wage increases” and “higher starting wages,” according to a Sept. 5 statement.
The USMX has also blamed the ILA for its alleged refusal to return to the negotiating table to resume talks. The employer even filed an unfair labor practice complaint ahead of the threatened strike.
The USMX has said it is “prepared to bargain at any time” but that there’s “no indication” that the ILA is interested in negotiating.
Potential Impact
President Joe Biden has stated that he will not intervene in the labor dispute between the two sides.
“It’s collective bargaining. I don’t believe in Taft-Hartley,” Biden told reporters on Sunday.
Biden made reference to a federal law enacted in 1947 that allows the U.S. president to intervene in labor disputes that threaten national security by imposing an 80-day cooling-off period between the parties involved, which would effectively suspend the pending strike. In 2002, President George W. Bush invoked the Taft-Hartley Act to halt an 11-day union strike at West Coast ports.
Seth Skiles, the founder of IO Law and an expert in e-commerce law, told NTD News in a statement that the two parties “seem far apart” and haven’t held talks since June. The White House will likely be forced to weigh in at some point, he said.
“If the strike goes ahead it will become the administration’s problem to solve,” Skiles said. “While Biden has said he won’t use his power to break the strike, presidents have in the past, and he may feel pressure to do so or otherwise take a more involved role to try and resolve.”
Skiles also said that the strike may impact some holiday purchases, and especially for smaller businesses such as boutiques and specialty retailers. Notably, food companies and other businesses that sell perishable products could also be impacted if the strike isn’t resolved in the coming months, Skiles said. Large businesses such as Amazon, however, have planned ahead.
According to a JPMorgan analysis, the strike could cost the economy $5 billion daily.
New York Governor Kathy Hochul said during a press conference on Monday that she fully expects a strike by dockworkers to begin on Tuesday. But she also reassured residents not to panic and to refrain from stockpiling items from grocery stores.
“The food supply is secure right now,” Hochul said.
Earlier this month, GOP House lawmakers and the Transportation and Infrastructure Committee sounded the alarm and urged the Biden–Harris Administration to do everything in its power to prevent a work stoppage at East and Gulf Coast ports.
Lawmakers are also concerned that the southeastern United States may be entering a challenging period as the strike looms because the region is already dealing with the devastating impacts of Hurricane Helene.
The 2024 Race
The ILA has not formally endorsed either former President Donald Trump or Vice President Kamala Harris in the 2024 race.
The ILA President, however, “enjoys a long relationship” with Trump dating back decades, according to a statement. The pair also met shortly after the first assassination attempt against Trump in Butler, Pennsylvania, in July.
Skiles told NTD News that the strike may ultimately not play a large role in the 2024 presidential election since businesses have been planning for months for a possible disturbance.
“It’s just one month until elections, likely too short a window for products to go missing on a national scale and create negative consumer sentiment,” Skiles said.