Tens of thousands of dockworkers on the East and Gulf coasts have gone on strike after their contracts expired at midnight on October 1. This walkout has affected 14 ports, potentially disrupting commerce along both the East and West coasts and impacting a significant portion of the American population. On Monday, officials from the Port Authority of New York and New Jersey, along with New York’s governor, began formulating contingency plans. With no negotiations since June, concerns are growing that this strike could severely impact the national supply chain.
Margaret Kidd, the director of supply chain and logistics at the University of Houston, estimates that a strike could incur costs of around $5 billion each day.
Negotiations between the longshoremen’s union and the U.S. Maritime Alliance, which represents shippers and ports, have reached an impasse, plus ports from Texas to New England account for nearly 35 percent of all U.S. imports and exports. According to the National Retail Federation, a one-day shutdown typically takes three to five days to recover, and prolonged disruptions further exacerbate the situation, which is already critical.
Underlying this strike are two main demands from unione members: Higher wages and protection from the automation process.
More specifically, the Maritime Alliance has proposed a 40 percent wage increase, but the longshoremen’s union is requesting a 70 percent increase, arguing that foreign shippers profit excessively from their work. The union also demands a better health coverage. In addition, the ILA (International Longshoremen’s Association) accuses shippers of charging excessive rates to customers, with an increase of $30,000 per container, or $6,000 in just six weeks. In between all this, the Port Authority of New York and New Jersey is monitoring the situation, with Executive Director Rick Cotton indicating that a resolution is unlikely before the gates close at 5 p.m. Monday.
“We will be able to successfully shut down operations at the port at a phased basis by midnight tonight,” Cotton claimed. “A significant number of containers will remain stored at the port, close to 100,000. They will be stored safely at the port for whatever the duration of the strike”.
Harold J. Daggett, president of the ILA, on the other hand, affirmed: “We must fight to get what is rightfully ours. Let’s get a contract. And let’s get on with this world”.
New York Governor Kathy Hochul herself held a press conference Monday on the state’s plans to handle possible disruptions in the event of a strike.
As discussions between the ILA and USMX continued with an October 1 deadline, Governor Hochul stated that “New York stands ready to assist working families in the event of a strike”. She then urged both parties to reach an agreement that accommodates workers and allows commerce to flow through New York’s busiest ports.
The U.S. Chamber of Commerce is urging the Biden administration to appeal the Taft-Hartley Act, which would force dock workers to remain on the job during negotiations. In response, however, White House Press Secretary Karine Jean-Pierre stated that the Biden administration will not intervene to prevent the port strike: “We have made our message very clear, very clear, we support collective bargaining, we believe we’ll try to come together, to get to a fair agreement, in good faith”.
