Dockworkers from Maine to Texas go on strike in move that could spark economic doom
Dockworkers at dozens of ports stretching along the East and Gulf coasts walked the picket line after midnight on Tuesday as they launched a massive strike that threatens to reignite inflation and spark product shortages at the start of the holiday seasšon.
The woš¹rk stoppage went into effect at 12:01 a.m. on Tuesday after the International Longshoremenās Association, which represents 45,000 workers, and tšhe alliance representing ports failed to renew a collective bargaining agreement that had just expired.
For the first time since 1977, 36 ports stretching from strategic seaboard locations as far north as Maine and as far south as Texas ā all of which handle ź¦an aggregate $3 trillion in thše countryās annual international trade ā will be idle due to a work stoppage.
The laborš dispute, in which longshoremen are demanding higher wages and protections against automation of their jobs, puts a pause on billions of dollars worth of daily trade and threatens to cause significant damage to an economy that has been beset by stubbornly persistent inflation.
It also comes at a critš ical time when auš thorities are in need of supplies and goods to deliver in hopes of helping parts of the Southeast recover from the devastating effects of Hurricane Helene.
Ports throughout the Southeast and the Gulf lost power wš„hile congestion piled up as a result of the massive storm.
Retailerās like Walmart, Ikea, Samsung, Bobās Discount Furniture, LG and Home Depot that rely on imported goods have the most exposure to the damages that would ensue if the strike were toš be prolonged.
Workers began pš¦¹icketing at the Port of Philadelphia shortly after midnight, walking in a circle at a rail crossing outside the port and chanting āNo work without a faš·ir contract.ā
The United States Maritime Alliance (USMX), the umbrella group repšresenting the managers of the ports, sought tšo avert a strike at the last minute late on Monday night ā offering a 50% wage hike over six years.
But the ILA rejected the offer, according to CNBC. Port ownership hoped thatš the offer would lead to renewed talks between the two sides.
The union appears to have dug in on its demands. In a recent video, ILA President Harold Daggett told rank-and-file members who voted unanimously to authorize a strike: āWeāll cruāsh them.ā
Daggett was seen addressing union workers at Maher Terminals in Elizabeth, NJ early Tuesday in a video that was posted to Instaą²gram.
āThis is going down in history, what weāre doing here,ā he told union members.Ā āThey canāt survive tāoo long.ā
Before Monday, it had been weeks since both sides sat down to tšalk about a new contract.
With negotiationź¦s at a standstill, the launch of the strike was antiācipated.
Several major ports iš½ncluding Boston, Nāew York/New Jersey, Philadelphia, Baltimore, Houston and Miami began to wind down operations in advance of the work stoppage.
New Yošrk Gov. Kathy Hochul released a statement just after midnight on Tuesday saying that her state āhas been working around the clock to ensure that our grocery stšores and medical facilities have the essential products they need.ā
Barring a dramatic breakthrough in talks, shippers wonāt have the option of rerouting cargo to West Coast ports šdue to limits on capacity in handlingš„ more containers.
The dockworkers union representing workers out West secured a new labor contract recently, so they will ą·“not be joining the strike.
Bź¦ut those dockworkers as well as their counterparts in Canada are unlikely to agree to handle East Coast ā¤goods in a show of solidarity with striking union members.
āYou can be sure the ILAās 85,000 members wilšl be supporting their Sisters and Brothers,ā James McNamara, a spokesperson for the International Longshore and Warehouse Union, which represents dockworkers on the West Coaāst, said in a statement.
Supply chain experts say consumers wonāt see an immediate impact from the stź¦”rike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.
But if it goes more than a few weeks, a work stoppage would significantly snarl the nationās supply chain, potentially leading to higher prices and delays in goods reachiš§ng households and businesses.
If drawn out, the strike will forcź§e businesses to pay shippers for delays and cause some ź¦goods to arrive late for peak holiday shopping season ā potentially impacting delivery of anything from toys or artificial Christmas trees to cars, coffee and fruit.
The strike ą¦will likely have an almost immediate impact on supplies of perishable imports like bananas, for example.
The ports affected by the strike handle 3.8 million metric tons of bananas each yeš °ar, or 75% of the nationās supply, according to the American Farm Bureau Federation.
It also could snarl exports from East Coast ports and cršeate traffic jams at ports on the West šCoast, where workers are represented by a different union.
Railroads say they can ramp up to carry more freight from the West Coast, bušt analysts say they canāt make up the cargo handled to the east.
āIf the strikes go ahead, they will cause enormous delays across the supply chź¦ŗain, a ripple effect which will no doubt roll into 2025 anād cause chaos across the industry,ā noted Jay Dhokia, founder of supply chain management and logistics firm Pro3PL.
J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normašl operations resume.
The strike comes just weeks before the āpresidential election and could become a factor if there are shortages.
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Retailers, auto parts suppliers and produce importers had hoped for a settlement or that President Biden would intervene and end the strike using the Taft-Hartley Act, which alį¦lows him to seek an 80-day cooling-off period.
But during an exchange with reporters āØSunday, Biden, who has worked to court union votes for Democrats, said ānoā when askš ed if he planned to intervene in the potential work stoppage.
āThe US government should stay the f–k out of this fight and allow union workers to withhold their labor for the wages and benefits they have earned,” Teamsters president Sean O’Brien said in a statement.
With Post wires