BREAKING NEWS: U.S. Longshoremen Strike in Multiple States with Serious Implications for Supply Chain

Thousands of U.S. East and Gulf port dockworkers went on strike in the early morning hours of 1 October 2024 following inconclusive labor negotiations between the International Longshoremen's Association (ILA), which represents 45,000 dockworkers, and the U.S. Maritime Alliance (USMX), which represents the 36 ports affected stretching from Texas to Maine. Union members are striking at 21 out of 36 of those ports.

The implications of a strike could be significant for the global supply chain. The Conference Board, a New York-based think tank, estimates that just one week of shut down could cost the economy $3.78 billion and increase the cost of consumer goods.

The ports that are the focus of the strike handle more than 68% of containerized exports and 56% of imports for the nation, with a daily trade value of $2.1 billion, according to a letter released Monday from the U.S. Chamber of Commerce. The letter urges President Biden to enact Taft-Hartley to prevent the work strike, which he did not.

“Americans experienced the pain of delays and shortages of goods during the pandemic-era supply chain backlogs in 2021,” U.S. Chamber of Commerce CEO and President Suzanne P. Clark stated in the letter. “It would be unconscionable to allow a contract dispute to inflict such a shock to our economy.”

In a White House press release, President Biden urged USMX to present a fair wage offer to the ILA, especially as the country faces unprecedented flooding following last week's hurricane.

“As our nation climbs out of the aftermath of Hurricane Helene, dockworkers will play an essential role in getting communities the resources they need,” Biden said. “Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits.”

Failed Negotiations

The ILA has been pushing for increased pay, benefits, and job security with the implementation of automated systems to be included in a new contract with USMX. The union expressed frustration with foreign-owned shipping companies seemingly taking advantage of port workers.

“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing,” the ILA stated in a press release Monday morning. “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.”

Workers are worried automation will take their jobs and increase prices of consumer goods. Jack Pennington, president of a Texas chapter of ILA, expressed discontent over the automation of jobs across America, seeing these processes as pushing workers out of jobs and bolstering profits for billion-dollar corporations.

“When the big 3 automakers decided to install robotic welders, painters, upholsterers, machinists, assemblers and countless other robots into production with the false pretense and promises that it would 'remember this quote' (save the consumer money) well I ask you this question, did it cut costs of an automobile? The answer is an Easy NO!” Pennington's Facebook post read. “In fact, the cost of the standard car went up to pay for the robots and them being installed and thousands of workers were left jobless!”

The last statement USMX made before the strike said the alliance offered to increase wages by nearly 50%, bolster employee retirement and healthcare benefits, and “retain the current language around automation and semi-automation.”

“We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement,” the 30 September statement from USMX said.

Leading up to the strike, USMX released multiple statements claiming it made attempts to reach collective agreement, which the ILA has written off as nothing more than publicity stunts.

“Nothing's going to move without us,” the ILA President Harrold J. Daggett said in a video posted to Facebook early Tuesday morning. “Nothing.”

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