Last week, we reported on a significant port strike that could severely affect America’s supply chain, especially with only thirty-five days left until the 2024 presidential election.
The International Longshoremen’s Association (ILA), representing around 45,000 dock workers on the East and Gulf coasts, is preparing to strike at midnight when their current contract with port managers expires.
On the morning of September 30, 2024, the North Bergen, New Jersey-based union announced it would not return to negotiations before the deadline, which is now just eleven hours away.
The union claims that the U.S. Maritime Alliance (USMX) is hindering the negotiation process. They stated, “The ocean carriers represented by USMX want to enjoy rich billion-dollar profits while offering ILA longshore workers an unacceptable wage package that we reject. ILA longshore workers deserve fair compensation for their crucial role in maintaining American commerce. It’s disgraceful that many foreign-owned shipping companies want to profit immensely while disregarding the contributions of American workers.”
Additionally, the ILA accused shipping companies of charging excessive rates, which are ultimately passed on to American consumers. They highlighted a staggering jump in shipping fees, with costs for a full container rising from $6,000 to $30,000 in just a few weeks.
In response to the union’s refusal to negotiate, USMX has not issued a statement since last week. They had previously sought intervention from the National Labor Relations Board (NLRB) to compel the union to resume negotiations, but no order has been granted so far. The Biden administration appears reluctant to intervene, as such a move may alienate blue-collar workers ahead of the upcoming election.
While both sides are at odds over wages and benefits, a significant concern revolves around automation. USMX wants to maintain existing technology guidelines for modernization, while the union seeks stronger protections against further automation that could threaten jobs.
As the strike looms closer, experts believe it may last only 24 to 48 hours. However, some forecasts suggest it could extend longer and potentially affect the West Coast ports as well.
Any interruption in operations could lead to substantial financial losses, with estimates suggesting a cost of $5 to $7 billion for every day the strike continues.
