At midnight, tens of thousands of longshoremen are expected to go on strike, closing important ports on the East and Gulf Coasts and obstructing the delivery of goods ranging from vegetables to auto components.
Customers won’t likely suffer unless the strike lasts for several weeks since logistics companies and businesses have prepared ahead of time to lessen the effects.
However, industry associations and economists caution that a work stoppage could still cost the US economy as much as $4.5 billion every day, or several hundred million dollars.
About half of the US’s maritime imports are handled by the ports. There are around 85,000 workers who are members of the International Longshoremen’s Association; estimates of how many of them may go on strike range from 25,000 to 50,000. The union claims that large international cargo carriers have profited from supply-chain hiccups during the epidemic that increased freight prices, and that workers have not been fairly compensated for these profits.
A walkout would put an end to months of bitter rhetoric between the union and USMX, the main group that represents port and ocean freight companies. The union wants restrictions on automation at ports that it claims might result in job losses in addition to pay increases.
In an afternoon press release, USMX stated that, in an effort to prevent a walkout, it had been exchanging pay offers with the ILA for the past 24 hours and that it was requesting an extension of the present contract.
The USMX stated, “Our offer would preserve the current language around automation and semi-automation, strengthen our health care options, triple employer contributions to employee retirement plans, and increase wages by nearly 50%.”
However, on Monday night, CNBC reported that the offer had been rejected by the ILA. As time ran out, the port operators had anticipated that by luring union officials back to the negotiating table, but this was not the case.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” the union stated in a statement released on Monday.
Many businesses have placed advance orders for items when it became evident that a stoppage may begin on October 1 in preparation for the strike; however, analysts anticipate more severe consequences if the walkout continues for several weeks or longer. Before a prospective strike, trucking and other logistics businesses are rushing to move as many cargo out of ports as they can.
The huge port operations of New York and New Jersey appear to be most affected, with around 4,500 workers in the region. While acknowledging that her state and the Port Authority of New York and New Jersey had been prepared for the strike, Governor Kathy Hochul of New York issued a warning about possible consequences.
“We’re working nonstop to get vital cargo out of our facilities—food items, medical supplies, and other necessities,” the spokesperson stated on Monday. “We are collaborating closely with the commercial trucking sector to guarantee the delivery of these items to their intended location.”
President Joe Biden has received pressure from business associations to step in under the 1947 Taft-Hartley Act. With that power, Biden may push for an alleged 80-day “cooling-off period” that would compel dockworkers to continue working.
The president does not intend to use the statute, notwithstanding recent communications between the White House and the ILA and USMX. Thirty-five days before Election Day, Democratic Vice President Kamala Harris is trying to leverage her union backing against Republican former President Donald Trump; such intervention might further sour ties with organized labor.
“I don’t believe in Taft-Hartley because it’s collective bargaining,” Biden said to reporters on Sunday.
