Topline
Dockworkers along the East and Gulf Coast are expected to walk out on Tuesday, a stoppage that could become one of the most disruptive strikes in U.S. history, experts and trade organizations said, halting the daily shipment of goods worth billions.
The strike would be the first along ports on the East Coast in nearly 50 years, potentially … [+]
Key Facts
About 45,000 members of the International Longshoremen’s Association (ILA) will begin their strike at 12:01 a.m. EDT on Tuesday, affecting 14 ports: Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.
The ILA is requesting a wage increase as part of a new contract with the United States Maritime Alliance, the organization representing shipping companies that employ the workers COSCO Shipping, Hapag-Lloyd and Maersk, among others, according to the Wall Street Journal, which cited one unnamed source who said the union sought a 77% increase.
Port workers on the East Coast earn about $81,000 annually on a 40-hour week, while employees on the West Coast make more than $116,000, according to CBS News.
West Coast dockworkers engaged in contract negotiations for more than a year before reaching an agreement in September 2023, a deal that raised the pay of union members by 32%, or about $4.62 per hour, the Los Angeles Times reported.
Transportation Secretary Pete Buttigieg and other Biden administration officials met with USMX representatives earlier this month to push the group toward a deal, a meeting the ILA declined to attend, CNN reported.
There are no scheduled talks between the ILA and USMX before the union’s contract expires Tuesday, according to Reuters.
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Big Number
Up to $7.5 billion. That’s how much the ILA’s strike could cut from the U.S. economy each week, Grace Zimmer, an economist at the financial analyst firm Oxford Economics, told the BBC. Analysis from The Conference Board, a New York-based think tank, estimates a one-week strike could cost the U.S. economy about $3.7 billion, ahead of estimates of $2.1 billion from the financial research firm Anderson Economic Group.
What Industries Are Affected?
The ports involved in the strike handle about 14% of all agricultural exports in the U.S. and 73% of all imports, according to the American Farm Bureau. Wilmington’s port is the nation’s leading importer of bananas, and about one-fourth of all banana imports in the U.S. will be impacted, the bureau said. The ports also handle more than 68% of all containerized exports—goods sold in bulk, like food, raw materials or electronics, that are shipped in containers—and about 56% of all containerized imports, CBS News reported. Perishable and non-perishable goods will also be affected, including cherries, wine, beer and liquor, as well as cocoa, sugar, furniture and appliances, among others. The Port of Baltimore handles the nation’s largest volume of auto imports, according to government data. Other goods that could face shortages include tin, tobacco and nicotine, Zimmer said.
What To Watch For
President Joe Biden has said he would not exercise powers under the Taft-Hartley Act to end the strike, despite requests from hundreds of business groups, according to CNN. The act could prevent a walkout for 80 days, after which time the workers could once again strike.
Key Background
The USMX has claimed for months it has reached out to the ILA to negotiate a new contract while being unable to schedule a meeting. The ILA argued Monday the USMX has continued to “block the path forward” on a new contract, though the union did not specify how. If the ILA goes on strike, it would be the first walkout by dockworkers on the East Coast since 1977, according to the USMX. The group filed an unfair labor practice complaint against the ILA last week, accusing the union of a “repeated refusal” to negotiate—a move the ILA suggested was “another publicity stunt.” Several sectors have urged both sides to reach an agreement—the Retail Industry Leaders Association, a trade group representing retailers in the U.S., said Monday both organizations should return to negotiations to ensure “these vital supply chain gateways are fully operational.” Suzanne Clark, president of the U.S. Chamber of Commerce, reportedly called on Biden to use the Taft-Hartley Act by saying it would be “unconscionable to allow a contract dispute to inflict such a shock to our economy.”
