Dockworkers at ports along the U.S. East and Gulf coasts, from Maine to Texas, have launched a strike over wage disputes and concerns about job automation.
The strike, which began early Tuesday in the US, involves roughly 45,000 members of the International Longshoremen’s Association (ILA) and could lead to inflation spikes and product shortages if it lasts beyond a few weeks.
The strike follows the expiration of the union’s contract at midnight. Despite some progress in negotiations, no agreement was reached, prompting workers to walk off the job at 36 ports. This is the first such strike by the ILA since 1977.
Picket lines were seen at several locations, including the Port of Philadelphia, where workers chanted for a fair contract. The ILA is pushing back against automation in port operations, with one local union leader, Boise Butler, telling the ABC that automation threatens jobs and families. “We’re not weak,” Butler said, underscoring the union’s critical role in the U.S. economy.
Port Houston also saw picketing, as workers called for higher wages and job protections. The union initially proposed a 77% wage increase over six years, citing the need to counter inflation and make up for smaller raises in recent years. While the U.S. Maritime Alliance, which represents the ports, has increased its offer to a 50% raise over the same period, it has not fully met the union’s demands, especially on the issue of automation limits.
ILA President Harold Daggett said the union is prepared to strike for as long as necessary to secure a fair deal. Talks had stalled since June, but Daggett made clear that without significant concessions from the ports, the strike will continue.
The strike is already causing concerns about its potential impact on the national supply chain. Although many retailers had prepared for potential disruptions by stocking up on goods, a prolonged work stoppage could lead to delays, especially in holiday items, and cause prices to rise.
The ports involved in the strike handle a significant portion of the country’s imports, including 75% of its bananas. Experts warn that perishable goods could be among the first to be affected by the strike. Analysts also predict ripple effects on exports and increased congestion at West Coast ports.
The economic impact could be severe if the strike persists, with estimates suggesting the cost could reach $3.8 to $4.5 billion per day. Businesses may face higher shipping fees and delays, with some goods potentially arriving late for the holiday season.
The strike also carries potential political implications, occurring just weeks before the presidential election. While some had hoped for intervention from President Joe Biden, he has so far declined to invoke the Taft-Hartley Act, which would impose an 80-day cooling-off period. The White House, however, remains engaged in discussions, urging both sides to reach a resolution quickly.
This is the President of the dock workers from Maine to Texas. They go on strike today, first time since 1977. This stops all shipping from coming ashore on the entire eastern seaboard all the way down to the Gulf of Mexico. I suggest you stock up TODAY on what you might need. pic.twitter.com/iN1MsCveDA
— John Rich🇺🇸 (@johnrich) October 1, 2024
