Union announces that US East Coast port strike will begin on Tuesday.

BY COMFORT OGBONNA

A port strike on the U.S. East Coast and Gulf of Mexico is set to begin on Tuesday, according to the International Longshoremen’s Association (ILA) union, raising concerns about potential delays and disruptions to supply chains.

“The United States Maritime Alliance refuses to address decades of wage suppression,” the union said in a statement. The United States Maritime Alliance (USMX) represents employers in the East and Gulf Coast longshore industry.

USMX has not yet commented on the situation. If union members strike at ports from Maine to Texas, it would mark the first coast-wide ILA strike since 1977, affecting ports responsible for handling around half of the nation’s ocean shipping.

A source indicated that there were no negotiations underway on Sunday, and none are scheduled before the midnight deadline on Monday. The union has stated that the strike would not affect military cargo shipments or cruise ship operations.

The White House has also not commented on the union’s statement. Earlier on Sunday, President Joe Biden said he would not intervene to prevent a walkout if dockworkers fail to secure a new contract by the October 1 deadline.

“It’s collective bargaining. I don’t support the Taft-Hartley Act,” Biden told reporters. The Taft-Hartley Act allows presidents to intervene in labor disputes that pose a threat to national security or public safety by enforcing an 80-day cooling-off period.

Reuters first reported on September 17 that Biden did not plan to invoke the Taft-Hartley provision, citing a White House official.

A strike could halt the flow of essential goods, including food and automobiles, at key ports, which could impact jobs and increase inflation in the weeks leading up to the U.S. presidential election.

The Business Roundtable, which represents prominent U.S. business leaders, expressed deep concern about the potential strike at East Coast and Gulf Coast ports.

The group warned that a labor stoppage could cost the U.S. economy billions of dollars daily, negatively affecting American businesses, workers, and consumers. They urged both sides to reach an agreement before the Monday night deadline.

For months, the ILA has threatened to shut down the 36 ports under its jurisdiction if employers, such as container ship operator Maersk and its APM Terminals North America, fail to provide significant wage increases and stop automation projects at the terminals.

The dispute has alarmed businesses that depend on ocean shipping to export goods or secure critical imports.

On Friday, Biden administration officials met with USMX to stress the importance of negotiating fairly and quickly, a message that had already been conveyed to the ILA. USMX has accused the ILA of refusing to negotiate.