Largest Strike in Decades Begins at East, Gulf Coast Ports
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U.S. dockworkers at ports along the East and Gulf Coasts have begun their first major strike in decades after labor negotiations failed to result in a contract Oct. 1.
The United States Maritime Alliance and the International Longshoremen’s Association have been negotiating a new master labor agreement throughout the summer. The deal would cover 45,000 unionized dockworkers at more than 30 container ports. But discussions between the sides have deteriorated into a labor strike.
ILA President Harold Daggett first announced the union would strike a month earlier if an agreement wasn’t reached before the old labor contract expired Oct. 1. The union accused port leadership of refusing to come to fair terms on wages and automation. The USMX has in turn filed an unfair labor practice complaint alleging that the union is not bargaining in good faith.
The Conference Board noted in a report that just a one-week strike could cost the U.S. economy $3.78 billion. The nonprofit business research organization said the ports handle 57% of container volume in the U.S. That includes a quarter of annual international trade at about $3 trillion. It also pointed out the strike is happening at a critical time with the presidential election approaching.
“A port strike would paralyze U.S. trade and raise prices at a time when consumers and businesses are starting to feel relief from inflation,” said Erin McLaughlin, senior economist at the Conference Board. “There’s no easy Plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternative options is limited.”
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