Advocacy News – Oct. 2, 2024
What’s new: On Tuesday, despite months-long attempts to re-invigorate discussions between labor leaders and port operators, the International Longshoreman Association (ILA) officially called for a labor strike, sending thousands of workers to the picket-lines. In their communications to the media and others, the ILA are calling for a 77% increase in pay, as well as an agreement to stall plans around automation and semi-automation. The United States Maritime Alliance (USMX), the group representing the East Coast port operators have said that labor groups have refused to come back to the negotiating table and their offer is in line with labor agreements recently brokered in other sectors like the automotive industry.
- In a statement, USMX had this to say: “Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation.”
- West Coast dockworkers have a separate union from East Coast workers. West Coast longshoremen received a new 6-year contract last year that included a 32%
- The last strike initiated by the ILA was in 1977 and lasted 44 days.
The impact: Labor and business experts have stated that the strike could cost as much as $5 billion a day. Additionally, for every day a strike occurs, its takes 5-7 days for operations to return to normal. Beyond restricting the flow of imports to domestic businesses and supply chains, the strike would also negatively impact the out-flow of goods, such as agricultural products from the Midwest.
Why it matters: The longshoremen’s strike is halting operations at ports across the East and Gulf coasts — threatening critical supply chains and potentially leading to the delay and disruption of goods from fresh produce to automobiles. The dozens of sites affected from Maine to Texas handle shipments of car parts, machinery, pharmaceuticals, and food, among other goods. Small businesses and retailers are also vulnerable to delays and shortages of needed materials heading into the holiday season.
- Last year, ports on the East and Gulf coasts handled about 40% of the country’s motor vehicle and parts trade, according to the Alliance for Automotive Innovation.
- In total, East and Gulf coast ports handle a significant amount of trade for the country — making up more than half of imports traveling by sea in containers as of Aug. 1, according to data from S&P Global Market Intelligence.
- The largest locations handled about $4.9 billion of exports and close to $2.7 billion of imports per month from August 2023 to July 2024.
What’s next: Over 177 trade associations, including the U.S. Chamber of Commerce, have called on the Biden Administration to take action. Such legal action could invoke the 1947 Labor Management Relations Act, also known as Taft-Hartley, which is designed to curb the power of labor unions. Biden said he doesn’t want to use Taft-Hartley, but it is an option for him.
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