A major strike erupted at dawn on Tuesday in prominent U.S. ports, where workers, united under the International Longshoremen’s Association (ILA), walked off the job for the first time since 1977 over low wages and the encroachment of automation.
The contract governing relations between the ports and approximately 45,000 ILA members expired at midnight on Monday. Although negotiations had shown some timid signs of progress in the days leading up to the strike, the lack of a satisfactory agreement compelled workers to take action. In Philadelphia, dockworkers began their picket shortly after midnight, symbolically marching around a crossing while chanting slogans like “No work without a fair contract.”
Boise Butler, president of the ILA for the Pennsylvania region, served as the spokesperson for the protest. “It’s imperative to secure a fair contract that protects jobs and prevents automation from taking our positions,” he stated, recalling how shipping companies recorded record profits during the pandemic. “We want what is rightfully ours back. We will not stop until we reach an agreement that meets our needs,” he concluded.
Negotiations between the union and the U.S. Maritime Alliance, which represents the ports, had shown some progress in previous days. The ILA proposed a 77% wage increase over six years to offset inflation and the minimal pay raises of past years. Currently, ILA members earn a base salary of about $81,000 a year, but some workers can earn over $200,000 with overtime.
On the other hand, employers proposed a 50% wage increase over the same period and guaranteed to maintain restrictions on automation based on the previous contract. However, the negotiations faltered over the union’s specific demand for a complete ban on automation, reiterated last June.
Experts believe that initially, global consumers may not feel a significant impact. However, that could change rapidly: retailers, who have stockpiled goods in anticipation of the upcoming fall and winter holidays, may face significant challenges if the port blockade extends beyond a few weeks. The consequences would be particularly pronounced for essential goods like fruit and other perishable items, potentially causing severe delays during the holiday shopping season.
The ports involved in the strike handle approximately 3.8 million tons of bananas annually, accounting for a staggering 75% of the national supply. Fresh produce could therefore vanish from store shelves in relatively short order. Delays may also extend to exports, causing congestion in ports represented by other unions.
Economically, a prolonged blockade of East Coast and Gulf of Mexico ports could cost the U.S. economy between $3.8 and $4.5 billion per day, with effects that would extend well beyond the end of the strike itself. Notably, the Biden administration has stepped in, maintaining regular communication with both parties and seeking to facilitate an agreement, although President Biden has ruled out the possibility of direct intervention.
