listen to this articleThe union representing America’s longshoremen has announced that 45,000 of its members will walk off the job at midnight, launching a major strike that will likely shut down ports on the East Coast and Gulf Coast.
Further work stoppages could cause major disruptions to the country’s supply chains, and if they last for weeks, could lead to higher prices and delays for households and businesses. A strike by members of the International Longshoremen’s Association could shut down 36 ports, which handle about half of the goods entering and leaving the United States.
The ILA confirmed over the weekend that its members would hit the picket line at 12:01 a.m. Tuesday. In Monday’s update, the union continued to accuse the American Maritime Alliance, which represents the ports, of continuing to “obstruct the path” to a deal before the contract deadline.
“While the ocean-going shipping companies represented by USMX want to enjoy billions of dollars in rich profits in 2024, they are offering unacceptable wage packages to ILA longshore workers. We reject this,” the ILA said in a prepared statement. “ILA longshore workers deserve to be compensated for the important work that keeps American commerce developing and growing.”
ILA also accused shippers of “gouging out customers” in recent weeks with steep price hikes for containers. The union said this would increase costs for U.S. consumers.
The Associated Press has reached out to a USMX spokesperson for comment.
If the strike lasts longer, businesses will be forced to pay delivery companies for delays and some goods will arrive late during the peak holiday season, from toys and artificial Christmas trees to cars, coffee and vegetables. This could affect the delivery of everything. Americans could also face higher prices as retailers feel tighter supplies.
Jay Dhokia, founder of supply chain management and logistics company Pro3PL, said: “If the strike goes ahead, it will cause significant delays throughout the supply chain, with ripple effects that will undoubtedly be felt in 2025 and across the industry.” It will cause confusion.”
Dokia said it was not just East Coast ports that were at risk of disruption, as concerns leading to strikes have already diverted much cargo to the West, putting further pressure on routes and demand. He added that there was no. He said the impact would also be felt internationally, especially in places like the UK, as the US is its largest trading partner.
ILA members are demanding higher wages and a complete ban on automation of cranes, gates and container-moving trucks used to load and unload cargo.
The upcoming strike by ILA workers will affect ports from Maine to Texas and will be the union’s first strike since 1977. Longshoremen on the West Coast belong to a separate union and are not participating in the strike.
If a strike is deemed a danger to the nation’s economic health, President Joe Biden could seek a court order requiring an 80-day cooling-off period under the Taft-Hartley Act of 1947. Then the strike will be called off.
Particularly with a close presidential election just weeks away, all eyes are on what action, if any, the administration will take. However, Biden has indicated he does not intend to use this authority.
In an interaction with reporters Sunday, Biden answered “no” when asked if he intended to intervene in a potential work stoppage.
“This is collective bargaining, so I don’t believe what Mr. Taft Hartley says,” Biden said, referring to a 1947 law that allows the president to intervene in labor disputes that threaten public health and safety. said.
