Dockworkers Launch Massive Strike With Just Five Weeks Until Election Day

Thousands of unionized dockworkers went on strike just after midnight on Tuesday at 14 major ports along the East Coast and the Gulf Coast, setting the stage for possible supply chain disruptions with about a month to…

Nick PopeOct 1, 20244 min read

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Thousands of unionized dockworkers went on strike just after midnight on Tuesday at 14 major ports along the East Coast and the Gulf Coast, setting the stage for possible supply chain disruptions with about a month to go until Election Day, according to Axios.

The International Longshoremen’s Association (ILA) announced in an early-morning Tuesday Facebook post that the union and its members would “shut down” the ports after failing to reach a new contract with the United States Maritime Alliance (USMX), according to Axios. The strike could cause major supply chain disruptions, shortages and billions of dollars of costs for the U.S. economy if it drags on for an extended period of time, and it comes just five weeks ahead of pivotal federal elections.

“USMX brought on this strike when they decided to hold firm to foreign owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the Labor that brings them their wealth,” ILA President Harold Daggett said of the strike, per Axios. “We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve.”

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USMX — an entity representing the interests of the container carriers, port associations and terminal operators that employ the longshoremen — says it offered to give the union a 50% wage increase, triple employer contributions to retirement plans, improve options for health care coverage and maintain current protections for workers against automation. However, this offer did not satisfy the union before it launched the strike largely due to concerns about automation.

If the strike lasts more than a few days, it risks knocking supply chains off balance and possibly causing shortages of goods like automobile parts and bananas, according to Axios. The new strike is the first major stoppage to hit major East Coast ports since 1977, though this one could be more economically disruptive given that global trade has grown substantially in the time since and elevated the importance of seaports.

Estimates vary as to how badly the strike may hurt the American economy, as JPMorgan projects that the strike could cost the U.S. as much as $4.5 billion per day while The Conference Board expects that the strike could end up costing about $3.7 billion if it goes on for a week, according to Axios. The strike figures include about 45,000 workers, but other related warehouse and transportation jobs could also be affected; Oxford Economics has projected that as many as 105,000 workers may find themselves temporarily out of work as a result of the stoppage.

President Joe Biden — who has touted himself as a staunchly pro-labor president — has the power to step in to forestall or end the strike under the Taft-Hartley Act of 1947, though he said Sunday that he does not plan to block the strike, according to Axios. However, some analysts are expecting the White House to intervene in the strike if it goes on for more than a week or so.

Blocking the strike could upset the key organized Labor constituency with elections just around the corner, but letting the strike go on for too long could put upward pressure on prices for consumers, who are already weary of Biden-era inflation, according to Axios.

Many companies knew that the strike could be coming, and rerouted shipments to West Coast ports unaffected by the strike in advance, according to Axios. However, some shipments — especially for perishable goods like fruits and vegetables — cannot be so easily redirected.

The ILA and USMX did not respond immediately to requests for comment.

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