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Longshoremen at 14 major ports along the US East and Gulf Coasts are set to strike if the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) cannot reach a labor agreement by midnight.
What’s the deal: The primary dispute between the ILA and the USMX centers around automation and wages. The union is demanding a ban on the automation of cranes, gates, and container trucks, which they argue would lead to significant job losses and undermine worker security. In addition to resisting automation, the ILA is pushing for a wage increase of 77% over the duration of the contract.
Concerns: If the longshoremen go on strike, it could have severe economic consequences, disrupting supply chains and international trade. These ports handle over half of the nation’s imports and exports, with a daily trade value exceeding $2.1 billion. A strike could lead to significant delays in shipping, creating backlogs that might last for weeks or months, particularly during a critical period for retailers ahead of the holiday season. Economic estimates suggest the strike could cost the economy between $600 million and $5.5 billion per day, raising the prices of consumer goods, exacerbating inflation, and potentially causing shortages. A prolonged strike could also have ripple effects across industries reliant on timely imports and exports, further straining the US economy.
What the White House is saying: In a statement, White House spokeswoman Robyn Patterson said, “We support collective bargaining. We believe it’s the best way for both American workers and employers to come to a fair agreement — one that benefits the workers in a way that reflects the success of the companies.” Patterson also confirmed that top White House officials have been in contact with USMX representatives and have urged “them to come to a fair agreement fairly and quickly.”
What both sides are saying:
Longshoremen: In a statement, the ILA said, “The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject. ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates.”
USMX: In a brief statement, USMX said they “have been clear that we value the work of the ILA and have great respect for its members. We have a shared history of working together and are committed to bargaining.”
