In a developing situation, a potential port strike threatens to disrupt America’s supply chain just thirty-five days ahead of the 2024 presidential election. The International Longshoremen’s Association (ILA), representing approximately 45,000 dock workers along the Atlantic and Gulf coasts, is prepared to strike at midnight when their current agreement with port managers ends.
On Monday, September 30, 2024, the North Bergen, New Jersey-based union stated that it would not return to negotiations before the deadline, adding pressure to the already tense situation. The union claims the U.S. Maritime Alliance (USMX) is obstructing efforts to reach a fair agreement.
“The ocean carriers, represented by USMX, want to reap the benefits of their substantial profits in 2024 while providing ILA longshore workers with an inadequate wage package,” a union spokesperson expressed. The ILA argues that dock workers deserve fair compensation for their critical role in sustaining American commerce, lamenting the influence of foreign shipping companies that profit from the U.S. market.
The union further accuses these companies of raising prices to the detriment of consumers. “They are now charging $30,000 for a full container, a drastic increase from just $6,000 a few weeks ago,” the union reported.
USMX has not issued a public statement since last week, when they criticized the ILA for refusing to negotiate. They have sought intervention from the National Labor Relations Board (NLRB) to compel the union back to the negotiating table, though no such action has been confirmed.
President Joe Biden and Vice President Kamala Harris face a tricky dilemma. If they allow a strike to proceed, they risk negative implications for their administration’s economic credibility, but intervening may alienate blue-collar workers as they approach the election.
While wage and benefit disputes are at the forefront, automation appears to be a critical sticking point in negotiations. USMX aims to maintain existing technology agreements, while the union seeks more guarantees regarding job security amid growing automation.
Industry insiders suggest that a strike seems likely, with expectations for it to last between 24 to 48 hours. However, some fear that if not resolved quickly, the disruptions could extend to the West Coast ports.
Regardless of the duration, the financial implications could be significant, with estimates of up to $5-7 billion in losses for every day of the work stoppage.
