The International Longshoremen’s Association (ILA)—the labor union representing 45,000 port workers along the Atlantic and Gulf Coasts of North America—went on strike today at 36 ports from Maine to Texas. It’s the first shutdown in almost 50 years.
The longshoreman’s strike could “paralyze” US trade, according to a report by the Conference Board, costing upwards of $3.78 billion a week and increasing the cost of consumer goods, even weeks after a possible resolution. Military cargo and cruise ships won’t be affected.
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The ILA’s previous contract expired on Sept. 30, and leaders said negotiations had stalled for a new six-year contract with United States Maritime Alliance (USMX), representing container carriers, direct employers, and port associations. In addition to higher wages, the ILA is seeking the end of automated machines like cranes, gates, and container-moving trucks, according to CBS News.
How the Longshoreman’s Strike Could Affect the Economy
The major ports impacted are 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.
The New York Times suggests that operations within each port will be the first affected, then the supply chain for several sectors around the country. Time-sensitive imports, particularly food items like fresh produce, dairy, coffee, and spices, are expected to be among the first goods impacted. It also touches nonperishable products like car parts, clothing, furniture, tobacco, and raw materials like cotton and wood.
The longshoreman’s strike could cause supply chain interruptions, delivery delays for manufacturers, and also temporary unemployment for port-adjacent jobs, like truckers and warehouse workers who will likely be furloughed as a result.
How the Longshoreman’s Strike Could Be Resolved
There’s hope that this strike will only last for a few days. At that point, the effects would be minimal. The fear is what happens if this goes on for multiple weeks.
The two sides are digging their toes in, though.
“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing,” the ILA said in a statement.
“It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.”
The USMX filed an unfair labor practice charge with the National Labor Relations Board, according to WorldCargo News, in an attempt to compel the ILA to resume bargaining. The USMX statement that followed mentioned that the side is “committed to bargaining,” but due to the ILA’s “repeated refusal,” there was no other choice than to file the charge.
If negotiations remain stalled, federal intervention could potentially resolve the impasse. Under the Taft-Hartley Act, President Biden has the authority to order workers back for an 80-day cooling-off period, though this is considered a last resort. On Sunday, though, Biden said he didn’t “believe in” doing that.
