Shipping containers sit in a pile at the Port of Baltimore on September 21, 2018. Dockworkers on the East Coast and Gulf Coast have threatened to strike as early as October 1, if a new contract is not reached.
Brendan Smialowski/AFP via Getty Images
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Brendan Smialowski/AFP via Getty Images
About 25,000 dock workers on the East Coast and Gulf Coast, from Boston to Houston, could strike starting October 1.
The union, the International Longshoremen’s Association, has been negotiating a contract with the United States Maritime Alliance, which represents longshoremen and port operators, for months. But the two have not seen each other since June.
The alliance this week filed charges with federal labor officials, arguing that the union is refusing to bargain. The union said the two had been in communication for the past several weeks.
More than 170 industry groups, from the National Association of Manufacturers to the U.S. Dairy Export Council to the Fashion and Jewelry Trade Association, urged the Biden administration to intervene, warning that strikes would hurt the economy.
What is the stalemate about?
The two main sticking points are wages and automation. In wages, neither party makes a general request or offer.
A statement from union president Harold Daggett suggested the union could seek a $5 hourly increase each year of the six-year agreement, increasing the top hourly wage from $39 to $69 at the end of the contract.
Wage increases under the current contract, signed in 2018, are much smaller, with just a $1 per hour increase in four to six years. The contract, which expires on Monday, goes through the pandemic, when dock workers have remained on the job, and inflation has been rising for months.
The U.S. Maritime Alliance said the current offer includes “industrial wage increases.” West Coast dock workers won a 32% raise in contract negotiations last year.
On automation, Daggett has warned dock workers that foreign companies operating marine terminals are seeking to replace them with machines.
In ports around the world and even on the West Coast, advanced technology has been used to move shipping containers.
The US Maritime Alliance said it proposed that the current ban on automatic equipment and the requirement that it use semi-automatic equipment be renegotiated.
In fact, the effect of automation on dock workers is not a settled issue. The shipping industry, supported by researchers at UC Berkeley, has made the argument that automation helps ports stay competitive and handle more goods, which in turn creates demand for skilled workers.
The International Longshoremen’s Association remains strongly opposed, citing job losses due to automation on the West Coast.
which port will be affected?
There are 14 ports where dock workers can go on strike, according to the US Maritime Alliance. They are the Ports of Boston, New York / New Jersey, Philadelphia, Baltimore, Norfolk, Wilmington, Charleston, Savannah, Jacksonville, Miami, Tampa, Mobile, New Orleans and Houston.
Dockworkers in West Coast ports are represented by different unions. They reached agreement on a new contract last year after lengthy negotiations.
What does it mean that goods come from abroad?
It depends on the item.
Many goods flow through East and Gulf ports, everything from agricultural products, medicines, heavy machinery, clothing, shoes and toys.
The port accounts for more than half of container imports, according to the National Association of Manufacturers.
With the labor dispute, some retailers started shipping earlier and have shifted some shipments to the West Coast, said Jonathan Gold, vice president of supply chain and customs for the National Retail Federation.
“We always hope there won’t be empty store shelves,” Gold said, noting the upcoming holidays. “I think retailers are doing everything they can to make sure that doesn’t happen.”
But the shutdown could cause immediate damage to other businesses, including manufacturers who rely on “just-in-time” inventory to produce goods, and agricultural exporters who have a short window of time to get products overseas.
And Gold noted that even a day’s shutdown would be devastating, as it could take several days to re-operate.
What did the White House say?
The Biden administration said all parties must continue to negotiate and do so in good faith.
But the White House has made it clear that President Biden is not considering invoking the Taft-Hartley Act. According to the 1947 law, the President can ask the court to appeal the cooling off period of 80 days when public health or safety is in danger.
In 2022, Biden was criticized for signing into law a measure that imposed a contract for freight rail workers, ending the possibility of a national rail strike.
Before the presidential election, the government certainly does not want to take risks from the labor group, one of the main constituencies.
