Longshoremen in ports from Maine to Texas are going on strike, threatening new shortages

PHILADELPHIA – Longshoremen at ports from Maine to Texas began picketing Tuesday as part of a strike against wages and automation that could reignite inflation and cause goods shortages if it lasts more than a few weeks.

The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight, and while there was progress in talks on Monday, workers went on strike. The strike, which affected 36 ports, is the first union strike since 1977.

Shortly after midnight, workers began picketing at the Port of Philadelphia, walking in circles at the railroad crossing outside the port and chanting, “No job without a fair contract.”

The union had signs on the side of the truck that read: “Automation Hurts Families: ILA stands for Labor Protection.”

Local ILA president Boise Butler said workers want fair contracts that don’t allow their jobs to be automated.

He said shipping companies have made billions during the pandemic by charging high prices. “Now we want them to pay for it. They will pay,” Butler said.

He said the union will strike as long as necessary to reach a fair agreement and has influence over companies.

“It’s not something you start and finish,” he said. “We are not weak,” he added, pointing to the importance of the EU for the country’s economy

In Port Houston, at least 50 workers began picketing around midnight local time, carrying signs that read “No job without a fair contract.”

The United States Maritime Union, which represents the ports, said Monday evening that both sides had withdrawn their previous wage offers. But no agreement was reached.

The union’s initial offer during the talks was for a 77% wage increase over the six years of the contract, and President Harold Daggett said it was necessary to offset inflation and years of modest increases. ILA members earn a base salary of about $81,000 a year, but some can earn more than $200,000 a year with a lot of overtime.

But on Monday evening, the alliance said it had increased its offer to 50% raises over six years and pledged to maintain automation restrictions under the old contract. The union wants a complete ban on automation. It was unclear how far apart the two sides were.

“We hope this will enable us to fully resume collective bargaining on other outstanding issues with a view to reaching an agreement,” the alliance said in a statement.

In a statement early Tuesday, the union said it rejected the alliance’s latest proposal because it “falls far short of the demands of rank-and-file ILA members for wages and protections from automation.” The two sides have not held formal negotiations since June.

“We are willing to fight as long as necessary, to refrain from striking for any period of time, to get the wages and protections from automation that our ILA members deserve,” Daggett said in a statement. “They must now meet our demands for the strike to end.”

The alliance said its offer tripled employer contributions to retirement plans and strengthened health care options.

Supply chain experts say consumers will not feel the immediate impact of the strike because most retailers have stocked up ahead of holiday gift shipments.

However, if it lasts longer than a few weeks, the shutdown would significantly disrupt the country’s supply chain, potentially leading to higher prices and delays in the delivery of goods to households and businesses.

If the strike drags on, companies will pay shippers for delays and some goods will arrive late during the peak holiday shopping season, which could impact shipments of everything from toys and artificial Christmas trees to cars, coffee and fruit.

The strike is likely to have an almost immediate impact on the supply of perishable imported goods such as bananas. According to the American Farm Bureau Federation, strike-affected ports tranship 3.8 million tons of bananas each year, representing 75% of the nation’s supply.

It could also hamper exports from East Coast ports and create traffic jams in West Coast ports where workers are represented by a different union. Railroads say they can increase traffic to move more freight from the West Coast, but analysts say they can’t move enough to make up for the backlog at closed eastern ports.

“If strikes continue, they will cause massive delays in the supply chain, and the ripple effect will undoubtedly extend into 2025 and create chaos across the industry,” noted Jay Dhokia, founder of supply chain management and logistics firm Pro3PL.

J.P. Morgan estimated that a strike closing ports on the East Coast and the Gulf Coast could cost the economy between $3.8 billion and $4.5 billion a day, with some of that amount recovered over time as normal operations resume.

The strike takes place a few weeks before the presidential election and may become a factor in the shortage. Retailers, auto parts suppliers and product importers had hoped for a settlement or for President Joe Biden to intervene and end the strike under the Taft-Hartley Act, which allows him to seek an 80-day cooling-off period.

But in an exchange with reporters Sunday, Biden, who has been working to win union votes for Democrats, said “no” when asked if he planned to intervene on a potential work stoppage.

A White House official said Monday that, at Biden’s direction, the administration is in regular contact with the ILA and the alliance to ensure negotiations are moving forward. The president has directed Chief of Staff Jeff Zient and National Economic Council Director Lael Brainard to convene the alliance’s board members on Monday afternoon and urge them to resolve the dispute fairly and quickly – in a way that takes into account the success of shipping companies in recent years and the input of union workers.

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Krisher reporting from Detroit. Associated Press journalists Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatte Grantham-Philips in New York, Dee-Ann Durbin in Detroit, Josh Boak in Washington and Annie Mulligan in Houston contributed to this report.