Visit Our Sponsors |
Tens of thousands of members of the International Longshoremen's Association (ILA) dockworkers’ union went on strike indefinitely October 1 at 14 major ports along U.S. East and Gulf Coast ports.
The strike affects ports with the combined capacity to handle as much as half of all U.S. trade volumes — Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware. It is the first major labor disruption at U.S. maritime hubs since a nine-month standoff in 2014-15 led to work slowdowns and reduced productivity at ports on the West Coast. The last ILA strike on the East Coast was in 1977.
BBC News reports President Joe Biden has the power to suspend the strike for 80 days for further negotiations, but the White House has said he is not planning to act.
The New York Post reports that an analysis by J.P. Morgan estimated a strike would cost the U.S. economy up to $5 billion per day.
Despite pleas from the ports involved and other industry figures, talks between the U.S. Maritime Alliance (USMX), a group representing ocean carriers and port terminal operators, and the ILA were not resumed before their six-year contract expired at the end of September 30.
Energy supplies and bulk cargo like municipal waste and road salt won’t be affected, and some exceptions will be made to allow for the movement of military goods and cruise ships.
On September 30, USMX said it had increased its offer, which would raise wages by almost 50%, triple employers' contributions to pension plans and strengthen health care options.
ILA president Harold Daggett has called for significant pay increases for his members, while voicing concerns about threats from automation.
Read More: Port Automation Is Hot-Button Issue in West Coast Labor Talks
USMX has accused the union of refusing to bargain, filing a complaint with labor regulators that asked them to order the union back to the table.
Under the previous contract, starting wages ranged from $20 to $39 per hour, depending on a worker's experience. Workers also receive other benefits, such as bonuses connected to container trade.
Daggett has indicated the union wants to an hourly pay increase of $5 each year over the life of the six-year deal, estimated to be about 10% per year.
RELATED CONTENT
RELATED VIDEOS
Timely, incisive articles delivered directly to your inbox.