Tens of thousands of dock and maritime workers are set to strike at midnight, threatening disruptions across East and Gulf Coast ports.
By yourNEWS Media Newsroom
In a move that could disrupt U.S. supply chains and impact billions of dollars in trade, tens of thousands of dock and maritime workers are poised to strike at midnight on October 1, as the International Longshoremen’s Association (ILA) confirmed in a statement on September 30. The strike would affect over three dozen facilities at ports spanning from Maine to Texas, which handle nearly half of the U.S.’s container volume.
The strike is set to occur after the expiration of the current collective bargaining agreement. The ILA, which represents 85,000 members, including 50,000 covered by the Master Contract, is demanding wage increases, better health care and retirement benefits, protections against automation, and access to funds generated through the industry’s Container Royalty program.
“The ocean carriers represented by USMX [United States Maritime Alliance] 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 ILA said in a statement. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”
If the strike goes ahead, it would be the first on the East and Gulf Coast since 1977, when port operations were halted for 45 days.
Impact on Ports and the U.S. Economy
The potential strike comes at a critical time, with many businesses preparing for the busy holiday season. Ports along the Atlantic and Gulf Coasts handle crucial imports, including apparel, automobiles, food, and household goods for major corporations such as Home Depot, Ikea, and Walmart.
Stamatis Tsantani, CEO and chairman of Seanergy Maritime and United Maritime, emphasized the potential disruption: “This is the worst possible time for a port strike since it will potentially affect the Christmas shopping season,” Tsantani told The Epoch Times.
A coalition of more than 150 businesses and trade organizations had previously urged the White House to prevent such a strike, warning that disruptions could cost at least $1 billion a day and have long-term consequences on the U.S. economy.
Calls for Government Intervention
Despite calls for federal intervention, President Joe Biden stated over the weekend that he would not step in to prevent the strike. The White House does have the authority, under the 1947 Taft-Hartley Act, to file a court order for an 80-day cooling-off period, which would suspend the strike and force both parties to return to negotiations. However, the administration has chosen not to use this option at this time.
The ILA accuses the USMX of refusing to meet worker demands. Last week, the USMX filed a complaint with the National Labor Relations Board, asking for the ILA to return to the bargaining table, claiming the union had declined multiple attempts to negotiate a new Master Contract.
Economic Fallout
The potential fallout from the strike extends beyond the port industry. Freight rail operators, trucking companies, and retailers are scrambling to move goods before the strike deadline. The Georgia Ports Authority has announced that it will not charge terminal demurrage fees during a work stoppage, while ports such as the Port of Houston have extended truck gate operations.
A strike would likely result in significant delays and backlogs, with each day of shutdown estimated to require nearly a week to recover. Major logistics firms such as Seko Logistics have warned of severe congestion and halted operations at key ports.
Economists, including Luke Tilley of Wilmington Trust Investment Advisors, note that while a strike would be disruptive, it is not seen as a major long-term inflation risk. However, Oxford Economics estimates that the strike could reduce GDP by $4.5 to $7.5 billion per week.
As the clock ticks toward midnight, businesses and consumers alike brace for the potential economic impact of the first East and Gulf Coast port strike in nearly five decades.
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