Dockworkers at ports from Maine to Texas began walking picket lines Tuesday as part of a strike over wages and automation that could reignite inflation and cause shortages of goods if it lasts more than a few weeks.
The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight, and although progress was reported in negotiations Monday, workers went on strike. The strike, which affects 36 ports, is the first organized by the union since 1977.
Workers began protesting at the Port of Philadelphia shortly after midnight, marching in a circle at a railroad crossing outside the port and chanting “No work without a fair contract.”
The union had billboards on the side of a truck reading: “Automation Hurts Families: ILA Stands For Job Protection.”
In Port Houston, located in the central time zone, an hour behind the East Coast, at least 50 workers gathered outside the port with signs reading “No work without a fair contract.” They seemed ready to start picketing. Workers showed a statement from the ILA on strike, saying employers have refused to pay workers fairly.
“ILA fights for respect, appreciation and fairness in a world in which companies are determined to replace hard-working people with automation,” the statement said. “Robots don’t pay taxes or spend money in their communities. »
The American Maritime Alliance, which represents the ports, said late Monday that both sides had backed away from their previous wage offers, but when picket lines went up just after midnight, it became clear that no deal would work. had been concluded.
The union’s initial offer during negotiations called for a 77 percent pay increase over the six years of the contract, with president Harold Daggett saying it was necessary to compensate for inflation and years of small increases. ILA members earn a base salary of about $81,000 a year, but some can earn more than $200,000 a year with lots of overtime.
But on Monday evening, the alliance announced that it had increased its offer to 50% over six years and committed to maintaining the automation limits of the old contract. The union wants a total ban on automation. It was unclear how far apart the two sides were.
“We hope that this will allow us to fully resume collective negotiations around the other outstanding issues with the aim of reaching an agreement,” the alliance statement said.
The union did not respond to requests for comment on the negotiations Monday evening, but said earlier in the day that the ports had refused demands for a fair contract and that the alliance appeared intent on striking. The two sides had not held formal negotiations since June.
The alliance said its offer tripled employer contributions to retirement plans and strengthened health care options.
During the day on Monday, some ports were already preparing for a strike. The Port of Virginia, for example, was on the verge of ceasing operations. It accepted the last incoming train for delivery at 8 a.m., closed its doors to incoming trucks at noon, and required ships to depart by 1 p.m. Cargo operations were halted at 6 p.m.
“We are handling this as we would during the buildup of a potential hurricane,” Joe Harris, a port spokesman, told the Associated Press. “And we’ll bring it back online like we would to recover from a hurricane. We have an experienced team. We have done this in the past.
Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers have stocked up on merchandise, moving ahead of shipments of gift items for the holidays.
But if it lasts more than a few weeks, a work stoppage would significantly disrupt the country’s supply chain, potentially leading to higher prices and delays in goods arriving at households and businesses.
If prolonged, the strike will force companies to pay shippers for delays and cause some goods to arrive late during the peak holiday shopping season — which could impact the delivery of everything from toys from artificial Christmas trees to cars, coffee and fruit.
The strike will likely have an almost immediate impact on the supply of perishable products like bananas, for example. Ports affected by the strike process 3.8 million tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.
It could also hamper exports from East Coast ports and create traffic jams at West Coast ports, where workers are represented by a different union. Railroads say they can increase their capacity to move more freight from the West Coast, but analysts say they can’t catch up with freight being handled east.
“If the strikes continue, they will cause huge delays in the supply chain, a ripple effect that will undoubtedly continue into 2025 and cause chaos across the sector,” noted Jay Dhokia, founder of supply chain management and logistics company Pro3PL.
JP Morgan estimates that a strike that closes East Coast and Gulf ports could cost the economy between $3.8 billion and $4.5 billion per day, with some of that being recouped over time after resumption of normal operations.
The strike comes just weeks before the presidential election and could become a factor in the event of a shortage. Retailers, auto parts suppliers and product importers were hoping for a settlement or for President Joe Biden to step in and end the strike using the Taft-Hartley Act, which allows him to request an 80-day cooling-off period.
But in an exchange with reporters Sunday, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in a possible shutdown. work.
A White House official said Monday that, under Biden’s leadership, the administration has been in regular communication with the ILA and the alliance to advance negotiations. The president ordered Chief of Staff Jeff Zients and National Economic Council Director Lael Brainard to convene alliance board members Monday afternoon and urge them to resolve the dispute fairly and expeditiously – in a way that takes into account the success of shipping companies in recent years and their contributions. unionized workers.
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Krisher was reported from Detroit. Associated Press journalists Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatte Grantham-Philips in New York, Dee-Ann Durbin in Detroit, Josh Boak in Washington and Annie Mulligan in Houston contributed to this report.
