Union Strike News

By David Shepardson, Steve Holland

WASHINGTON (Reuters) – A port strike on the U.S. East Coast and Gulf of Mexico will commence on Tuesday, according to the International Longshoremen’s Association (ILA) union, indicating potential delays and supply chain disruptions.

The union stated, “United States Maritime Alliance … refuses to address a half-century of wage subjugation.” The United States Maritime Alliance (USMX) represents the employers in the longshore industry along the East and Gulf Coasts.

USMX did not immediately react to the announcement.

If union members leave their posts at ports from Maine to Texas, it would mark the first coast-wide ILA strike since 1977, impacting ports that handle around half of the nation’s ocean shipping traffic.

Sources revealed that no negotiations occurred on Sunday and none are scheduled before the midnight Monday deadline. The ILA previously mentioned that the strike would not affect military cargo or cruise ship operations.

The White House has yet to comment on the union’s announcement.
Earlier, President Joe Biden indicated he would not intervene to prevent the walkout if dock workers fail to secure a new contract by the October 1 deadline. He stated, “It’s collective bargaining. I don’t believe in Taft-Hartley,” referring to presidential intervention in labor disputes affecting national security or safety under the federal Taft-Hartley Act.

A potential strike could disrupt the flow of various goods, including food and automobiles, at major ports, potentially affecting jobs and driving inflation just weeks before the U.S. presidential election.
Business Roundtable, representing major U.S. business leaders, expressed deep concern about the strike’s potential impact on the economy, warning that it could result in daily losses of billions of dollars, harming American businesses, workers, and consumers. The organization urged both parties to reach an agreement before the Monday night deadline.

For months, the union has threatened to shut down the 36 ports under its jurisdiction if employers, such as container shipping operator Maersk and APM Terminals North America, do not provide significant wage increases and halt terminal automation projects.

Businesses relying on ocean shipping for exports and crucial imports are anxious over the dispute.
On Friday, Biden administration officials met with the USMX employer group to stress the necessity of fair, good-faith negotiations, a message previously conveyed to the ILA. The USMX group has accused the ILA of failing to negotiate adequately.