Port workers at 14 major U.S. ports went on strike early Tuesday morning after last-minute negotiations between their union and the Maritime Alliance failed to reach an agreement on wage issues.
The Port of Virginia, one of those affected, confirmed on its website that the strike began at 12:01 a.m. Tuesday.
Talks between the United States Maritime Alliance (USMX), which represents employers, and the ILA union are “at a standstill,” officials said.
The ILA union announced that as of 12:01 a.m. Tuesday it “has shut down operations at all ports from Maine to Texas.”
Union President Harold Daggett said in a statement that they are prepared to “fight as long as it takes” to get the wages and protections against automation that he says union members deserve.
Bad news for Harris on the campaign trail
US President Joe Biden called on businesses and unions to “come to the table and negotiate in good faith, fairly and quickly,” the White House said in a statement.
The conflict poses a major challenge for the government, especially for Vice President Kamala Harris, who is seeking to position herself as Biden’s successor as both work to consolidate their pro-union image ahead of the November presidential election.
Biden has so far ruled out federal intervention amid the growing tension.
On Monday night, both sides announced that they had resumed negotiations, which began in May but have been hampered by disagreements over wages and job automation.
The Maritime Alliance reported that in the past 24 hours both sides exchanged counteroffers regarding wages and that the employers’ association had “improved” its proposal, in addition to requesting an extension of the current labor agreement to continue negotiating.
However, a source close to the talks indicated that the union rejected that offer on Monday.
The longshore union, the ILA, had planned to strike at 14 ports on the East Coast and the Gulf of Mexico as soon as the six-year labor agreement expired.
USMX, which represents employers at 36 ports, is facing a strike involving all 85,000 of the union’s members in the United States, including workers at seaports, rivers and lakes.
According to Oxford Economics, the strike could cost the US economy between $4.5 billion and $7.5 billion per week, depending on its duration, according to its analysts.
One of the central issues of the conflict is the fight against the automation of port work. This is the first major strike by the ILA since 1977, and it comes in a context in which other major strikes, such as those by autoworkers and Boeing employees, have also emerged this year over wages and working conditions.
The collective agreement affects some 25,000 unionized ILA workers at major ports such as New York/New Jersey, Boston, Philadelphia, Savannah, New Orleans and Houston.
For her part, New York Governor Kathy Hochul mentioned on Monday that port authorities were making efforts to release as much merchandise as possible before the strike begins.
Other terminals, such as those in New Orleans and Savannah, implemented overtime in recent days in order to speed up the flow of merchandise.
The ILA union is demanding protective measures to avoid job losses due to the automation of processes, as well as a salary increase for longshoremen, who were essential workers during the COVID-19 pandemic.
Press reports indicate that the ILA is requesting a 77% salary increase over seven years.
For its part, the USMX declared that its latest proposal included a salary increase of close to 50%, in addition to tripling employer contributions to retirement plans and strengthening health benefits.
Erin McLaughlin, an economist at the Conference Board, warned that a port strike could halt U.S. trade and lead to higher prices just as consumers and businesses are beginning to experience relief from inflation.
