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.

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.

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.

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.

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. (Source: Forbes)

Story Date: October 1, 2024