The International Longshoremen’s Association (ILA) union announced on Sunday (September 29th) that a strike at ports along the U.S. East Coast and Gulf of Mexico will commence on Tuesday (October 1st). The potential strike could result in transportation delays and greatly disrupt the entire U.S. supply chain.
“In a statement, the ILA said that the United States Maritime Alliance (USMX) has refused to address the decades-long issue of wage suppression,” ILA represents employers in the East Coast and Gulf Coast dock industry.
The USMX employers, in turn, have accused the ILA of rejecting negotiations.
The two sides of the dispute have not met since June, according to a source who informed Reuters on Sunday (September 29th). There have been no plans for negotiations before the deadline at midnight on Monday.
There is widespread concern that a potential major strike could throw the U.S. supply chain into chaos. The union has previously stated that the strike would not impact the transportation of military goods or cruise traffic.
Earlier on Sunday, U.S. President Biden stated that if dockworkers fail to reach a new contract by the October 1st deadline, he does not intend to intervene to prevent the strike.
“This is a collective bargaining. I do not believe in the Taft-Hartley Act,” he told reporters. Under this legislation, the president can intervene in labor disputes threatening national security by imposing an 80-day cooling-off period.
White House spokesperson Robyn Patterson stated later on Sunday that senior officials have been in contact with USMX representatives over the weekend, “urging them to reach a fair and swift agreement, one that reflects the success of the companies.” She added that the same message was also conveyed to the ILA.
If union members stage a strike from ports in Maine to Texas, it would be the first coast-wide ILA strike since 1977, affecting ports that handle about half of the nation’s deep-sea shipping.
The Business Roundtable, representing major U.S. business leaders, expressed deep concern over the potential strike at ports along the East Coast and Gulf of Mexico.
The organization warned that a stoppage could cost the U.S. economy billions of dollars each day, “damaging the interests of American businesses, workers, and consumers nationwide. We urge both sides to reach an agreement before the deadline on Monday evening.”
For months, the ILA union has threatened to halt operations at 36 ports it covers if container shipping operators like Maersk and its North American APM terminals do not significantly increase wages and cease dock automation projects.
This dispute has left businesses reliant on exporting goods via deep-sea shipping or securing vital imports feeling anxious.