About 50,000 members of the International Longshoremen’s Association (ILA) are on strike, halting port operations on the East Coast and Gulf Coast. The strike could be the most destructive work stoppage in the United States in decades, halting the flow of much of the country’s imports and exports.
Here’s what you need to know:
Which parties are involved?
The American Maritime Alliance represents ports, and the ILA represents longshoremen.
The ILA announced Monday night that both parties had abandoned their previous wage proposals. Longshoremen at ports from Maine to Texas went on strike after a labor contract between the ILA and the American Maritime Alliance expired at midnight.
What are the union demands?
The union is demanding significant wage increases and a complete ban on the use of automated cranes, gates and container-moving trucks to load and unload cargo.
Which ports are affected?
The 14 major ports affected by the strike account for just over half of U.S. container trade, a key component of the supply chain linking the U.S. to the global economy.
Boston, MA New York/NJ Philadelphia, PA Norfolk, VA Baltimore, MD Wilmington, DE Charleston, SC Savannah, GA Jacksonville, FL Tampa, FL Miami, Mobile, FL , Alabama New Orleans, Louisiana Houston, Texas
How much cargo will be handled at the affected ports?
According to the National Association of Manufacturers (NAM), more than 68% of container exports and 56% of imports pass through the Eastern and Gulf ports, with an average daily trade value of more than $2.1 billion. These ports handle more than 91% of containerized imports and 69% of containerized exports of pharmaceuticals. The company handles more than 76% of containerized vehicle exports and more than 54% of containerized vehicle imports. For aviation and spacecraft, more than 77% of container exports and 51% of container imports pass through these ports.
What are the implications for consumers?
If the strike continues for more than a month, many consumers will experience sharp increases in product prices due to supply chain disruptions. This affects shipping and prices for many products such as toys, coffee, cars, fruit, etc.
“It affects us in a lot of ways,” said Greg Ahern, president and CEO of the Toy Association. “From a consumer perspective, it starts with delays in availability and then begins to surface as product shortages in toys. In toy industry retail, prices can go up based on scarcity and increased costs. .”
Will the White House intervene to stop the strike?
President Joe Biden does not intend to use his powers under the Taft-Hartley Act of 1947 to intervene in the ILA’s ongoing strike. Instead, Biden called on the U.S. Maritime Alliance to offer striking longshore workers a fair offer.
“Collective bargaining is the best way to get workers the wages and benefits they deserve,” Biden said in a statement. “Executive pay has increased with profits, returning profits to shareholders in record time. It’s no surprise that we’re also seeing a significant increase in wages.”
What is the business world saying?
The National Association of Manufacturers has called on President Biden to invoke national security law to order workers to return to ports while negotiations continue.
“NAM estimates that strikes at Eastern and Gulf ports could threaten $2.1 billion in trade per day, and total economic damage could reduce GDP by up to $5 billion per day.” said Jay Timmons, president and CEO of the association. A manufacturer official said.
“In 2021, Americans experienced the pain of delays and shortages of goods during pandemic-era supply chain hold-ups,” the Chamber of Commerce said in a statement to the president. It would be unconscionable to allow this to happen.” our economy. ”