On Tuesday, October 1, dockside workers at U.S. East Coast and Gulf Coast ports went on strike, the first large-scale walkout in nearly 50 years. The strike followed an impasse in negotiations over a new contract with a group representing the port employers.
The International Longshoremen’s Association (ILA), representing 45,000 dockworkers, held its first strike since 1977 after its six-year contract with the U.S. Maritime Alliance (USMX), representing port employers, expired at midnight on September 30.
Negotiations between the ILA and USMX have been deadlocked since June. The dispute is mainly over wages and a union-proposed ban on increased automation of port cranes, gates, and trucks that could cost jobs.
According to the National Association of Manufacturers, over 68 percent of containerized exports and 56 percent of containerized imports pass through East and Gulf Coast ports, amounting to an average daily trade value exceeding $2.1 billion.
USMX reportedly made a new offer to the ILA on the afternoon of September 30 that would have raised wages by nearly 50 percent under the new contract, tripled employer contributions to retirement plans, improved health care, and retained language about automation in the deal. The ILA reportedly rejected the offer and did not make a counteroffer.
The strike comes after USMX filed an unfair labor complaint with the National Labor Relations Board against the ILA last week, arguing that the group was breaking labor laws by refusing to negotiate. The ILA criticized the move as a “publicity stunt” and said USMX should file labor complaints against port employers for not paying dockworkers better wages.
The strike spans from Maine to Texas and blocks everything from food to auto shipments across dozens of ports. Analysts have warned that this could cost the economy billions of dollars a day, threaten jobs and potentially stoke inflation, making the potential impact of the strike more tangible.
Image courtesy ILA
