Strike by longshoremen continues for second day along East Coast
Lorraine Mirabella, The Baltimore Sun
Wed, October 2, 2024
A longshoremen strike in the eastern U.S. continued for the second day Wednesday as the dockworkers union and port operators traded accusations of blame for the walkout.
Tens of thousands of longshoremen joined picket lines after midnight Tuesday after a labor contract expired, shutting down the Port of Baltimore and dozens of ports from Maine to Texas. Members of the International Longshoremen’s Association, fighting for better wages and protection from automation, rejected an offer by the U.S. Maritime Alliance to boost wages by 50% over six years.
The Maritime Alliance, which represents port employers like shipping lines and marine terminals, fired back with its first public comment since the walkout, saying it has done its part to end “the completely avoidable ILA strike.”
“Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running,” the alliance said in a news release. “We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”
“Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running,” the alliance said in a news release. “We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”
The ILA countered that the alliance last made a contract offer in February 2023, then waited until the eve of a potential strike to make another.
“USMX’s claim that they are ready to bargain rings hollow,” the ILA statement said.
The union said the offer fails to address demands of members, many of whom operate container handling equipment worth millions of dollars for $20 an hour when minimum wage is $15 in many states. And two-third of ILA members work on an on-call basis with no guaranteed employment if no ships are in port for loading or unloading, the ILA said.
“Our members endure a grueling six-year wage progression before they can even reach the top wage tier, regardless of how many hours they work or the effort they put in,” the union’s statement said.
The maritime alliance responded again late Wednesday, saying it will not agree to preconditions to return to bargaining but is focused on addressing “critical” issues.”
“Reaching an agreement will require negotiating — and our full focus is on how to return to the table to further discuss these vital components, many of which are intertwined,” the statement said.
The work stoppage is the first widespread longshoremen’s strike in almost five decades. Dockworkers in Baltimore, about 2,400 of whom are ILA members, are walking picket lines outside terminals such as Dundalk, Seagirt and South Locust Point.
The union argues that wage increases in the previous contract were wiped out by rising inflation, while ocean carriers, most of them foreign-owned, have made record profits.
The strike has led to a shutdown of Baltimore’s port for the second time this year. The port was largely closed for about two months after the container ship Dali struck the Francis Scott Key Bridge, collapsing the span into the Patapsco River, blocking the channel and killing six roadway workers.
It’s also expected to disrupt the economy, both locally and around the country, as the delivery of goods from overseas is delayed. Some economists expect costs to rise, rekindling inflation just as it seemed to be coming under control.
If the strike drags on, pressure would rise on the federal government to intervene, using powers under the Taft-Hartley Act, but such intervention seems unlikely for now.
In a statement on the strike, Acting U.S. Labor Secretary Julie Su criticized the shipping companies.
“As these companies make billions and their CEOs bring in millions of dollars in compensation per year, they have refused to put an offer on the table that reflects workers’ sacrifice and contributions to their employer’s profits,” Su said.
She also urged the ILA and the alliance to resolve their differences quickly.
“There is room for both companies and their workers to prosper,” Su said. “The parties need to get back to the negotiating table, and that must begin with these giant shipping magnates acknowledging that if they can make record profits, their workers should share in that economic success.”
A port shutdown in Baltimore could cause losses similar to those caused by the Key Bridge collapse and cost the state’s economy an estimated $15 million a day, said Daraius Irani, chief economist of Towson University’s Regional Economic Studies Institute.
“It would be a hit, and depending on how long it goes would determine how long it takes to recover,” Irani said. “The other challenge is, unlike when the bridge collapsed and the port was closed, there were alternatives,” for rerouting ships along the Eastern seaboard.
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Alex Gangitano
Tue, October 1, 2024
President Biden called for striking port workers to get an increase in wages, hours after tens of thousands of longshoremen at ports along the East Coast and Gulf of Mexico walked off the job.
The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) failed to reach an agreement by the midnight deadline, leading to the first strike by the port workers’ union in nearly 50 years.
Biden, in a statement, said he has urged USMX to come to the table and present a fair offer to the workers that ensures they are paid appropriately.
“Ocean carriers have made record profits since the pandemic and in some cases profits grew in excess of 800 percent compared to their profits prior to the pandemic. Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates,” Biden said. “It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”
The union has demanded wage increases and a total ban on the automation of cranes, gates and container-moving trucks, and the USMX said Monday evening that it had “traded counteroffers related to wages” with the ILA.
Biden also noted that in the aftermath of Hurricane Helene, dockworkers will play an essential role in getting communities resources, adding, “now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits.”
He stressed that longshoreman have made a “substantial contribution” to the U.S. economy’s comeback, reiterating his call for USMX to negotiate a fair contract for them.
Copyright 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Port strike raises fears of toilet paper shortages; Here's what to know and stock up on
Maria Francis, USA TODAY NETWORK
Erie Times News
Wed, October 2, 2024
1
Wed, October 2, 2024
1
The port strike has induced fears of toilet paper shortages reminiscent of the COVID-19 pandemic era.
Thousands of dockworkers took to the picket lines on Tuesday, shutting down the East and Gulf ports from Maine to Texas after stalled negotiations between the International Longshoremen's Association (ILA) and the shipping industry's group US Maritime Alliance (USMX) over wages and automation.
But, the lack of toilet paper on the shelves today is not directly caused by Tuesday's port strike, but rather it's because of panic buying.
Pictures on social media and TikTok videos are surfacing of long lines of customers at stores with carts full of grocery items, bottled water, toilet paper and bare shelves as shortages are already being reported.
Videos posted online claim that toilet paper is sold out at Costco stores from Arizona and Colorado to New Jersey, with one worker saying their stock was cleared one hour after opening, according to news source.
However ... over 90% of toilet paper used in the U.S. comes from domestic factories and not from containers shipped from overseas, per news reports.
The supply chain disruption and economic impacts could be in fact be catastrophic with each passing day that the 36 ports are shut down — as much as $5 billion a day as imports and exports are blocked. It could lead to raised prices on goods and potentially cause shortages.
“Any strike that lasts more than one week could cause goods shortages for the holidays,” Eric Clark, portfolio manager at Accuvest Global Advisors, told USA TODAY. “We could get the kind of inflation for six months similar to or worse than peak inflation levels a year ago.”
Retailers, such as Costco, had been shipping months in advance, expediting holiday goods orders ahead of the possible port strike, signaled by a surge in container imports and freight rates in July and August according to news reports, but holiday shopping could be impacted.
Consumers would first notice shortages of perishable products, as grocery aisles could be bare of popular fruits like bananas within weeks, given that about two-thirds of bananas in the U.S. arrive in East Coast ports. Other likely shortages include seafood, electronics, pharmaceuticals, cars and auto parts, machinery parts, and alcohol.
Toilet paper lines the shelves at a Giant supermarket, Wednesday, October 2, 2024, in Plumstead Township.
Here's what you need to know.
What is at the heart of the labor dispute?
Union workers at ports in the East and Gulf coasts earn a base wage of $39 an hour after six years on the job compared to reports that West Coast union workers, which make $54.85 an hour.
The International Longshoremen's Association is demanding a 77% pay raise increase over six years and more restrictions and bans on the automation of cranes, gates and container movements used in loading or unloading of cargo.
According to news sources, USMX responded with an offer of 40% in wage increases, but the union rejected it, calling the counter “a joke.”
There hasn’t been an ILA strike against these ports since 1977.
What products would be impacted by a port strike?
A port strike will impact vehicle imports, auto parts, machinery, fabricated steel, precision instruments, computers, electronic parts and alcohol - 80% of imported beer, wine, whiskey and scotch and 60% of rum arrive at East and Gulf coast ports.
The Port of Baltimore, Maryland leads the nation in car shipments. The Philadelphia port leads in fruits and vegetables, New Orleans port brings in coffee and wood products such as plywood.
Agricultural impacts such as the imports of bananas and fruits, coffee and cocoa or exports of soybeans and soybean meal would be felt. However, even more significant impacts would be felt on the chilled or frozen meat products, seafood and eggs, which require refrigerated containers that cannot sit for very long.
The Port of Wilmington in Delaware is the leading port for Dole Fresh Fruit Co. and Chiquita Fresh North America, getting about two-thirds of all banana imports in the U.S.
“Any fruit that arrives after 1 October will be condemned to the trash can,” Peter Kopke Sr. of Port Washington-based importer Kopke Fruit told The Orange County Register. “And all of the people who have invested in that business will lose a fortune.”
Knitted and non-knitted apparel, furniture, plywood and pharmaceutical products and year-end holiday items would be among the endless list of products impacted by the strike.
This article originally appeared on Erie Times-News: Port strike raising fear of toilet paper shortages and panic buying
Cargo delays expected as workers strike at East, Gulf Coast ports, including Port of Virginia
Thousands of dockworkers took to the picket lines on Tuesday, shutting down the East and Gulf ports from Maine to Texas after stalled negotiations between the International Longshoremen's Association (ILA) and the shipping industry's group US Maritime Alliance (USMX) over wages and automation.
But, the lack of toilet paper on the shelves today is not directly caused by Tuesday's port strike, but rather it's because of panic buying.
Pictures on social media and TikTok videos are surfacing of long lines of customers at stores with carts full of grocery items, bottled water, toilet paper and bare shelves as shortages are already being reported.
Videos posted online claim that toilet paper is sold out at Costco stores from Arizona and Colorado to New Jersey, with one worker saying their stock was cleared one hour after opening, according to news source.
However ... over 90% of toilet paper used in the U.S. comes from domestic factories and not from containers shipped from overseas, per news reports.
The supply chain disruption and economic impacts could be in fact be catastrophic with each passing day that the 36 ports are shut down — as much as $5 billion a day as imports and exports are blocked. It could lead to raised prices on goods and potentially cause shortages.
“Any strike that lasts more than one week could cause goods shortages for the holidays,” Eric Clark, portfolio manager at Accuvest Global Advisors, told USA TODAY. “We could get the kind of inflation for six months similar to or worse than peak inflation levels a year ago.”
Retailers, such as Costco, had been shipping months in advance, expediting holiday goods orders ahead of the possible port strike, signaled by a surge in container imports and freight rates in July and August according to news reports, but holiday shopping could be impacted.
Consumers would first notice shortages of perishable products, as grocery aisles could be bare of popular fruits like bananas within weeks, given that about two-thirds of bananas in the U.S. arrive in East Coast ports. Other likely shortages include seafood, electronics, pharmaceuticals, cars and auto parts, machinery parts, and alcohol.
Toilet paper lines the shelves at a Giant supermarket, Wednesday, October 2, 2024, in Plumstead Township.
Here's what you need to know.
What is at the heart of the labor dispute?
Union workers at ports in the East and Gulf coasts earn a base wage of $39 an hour after six years on the job compared to reports that West Coast union workers, which make $54.85 an hour.
The International Longshoremen's Association is demanding a 77% pay raise increase over six years and more restrictions and bans on the automation of cranes, gates and container movements used in loading or unloading of cargo.
According to news sources, USMX responded with an offer of 40% in wage increases, but the union rejected it, calling the counter “a joke.”
There hasn’t been an ILA strike against these ports since 1977.
What products would be impacted by a port strike?
A port strike will impact vehicle imports, auto parts, machinery, fabricated steel, precision instruments, computers, electronic parts and alcohol - 80% of imported beer, wine, whiskey and scotch and 60% of rum arrive at East and Gulf coast ports.
The Port of Baltimore, Maryland leads the nation in car shipments. The Philadelphia port leads in fruits and vegetables, New Orleans port brings in coffee and wood products such as plywood.
Agricultural impacts such as the imports of bananas and fruits, coffee and cocoa or exports of soybeans and soybean meal would be felt. However, even more significant impacts would be felt on the chilled or frozen meat products, seafood and eggs, which require refrigerated containers that cannot sit for very long.
The Port of Wilmington in Delaware is the leading port for Dole Fresh Fruit Co. and Chiquita Fresh North America, getting about two-thirds of all banana imports in the U.S.
“Any fruit that arrives after 1 October will be condemned to the trash can,” Peter Kopke Sr. of Port Washington-based importer Kopke Fruit told The Orange County Register. “And all of the people who have invested in that business will lose a fortune.”
Knitted and non-knitted apparel, furniture, plywood and pharmaceutical products and year-end holiday items would be among the endless list of products impacted by the strike.
This article originally appeared on Erie Times-News: Port strike raising fear of toilet paper shortages and panic buying
Cargo delays expected as workers strike at East, Gulf Coast ports, including Port of Virginia
Nathaniel Cline
Tue, October 1, 2024
A view of the Port of Virginia in Norfolk. (Courtesy Port of Virginia)
As experts anticipated, members of the International Longshoremen’s Association went on strike Tuesday, hoping to settle on a new agreement with the United States Maritime Alliance, leaving cargo in limbo at East and Gulf Coast ports, including at the Port of Virginia.
Workers want better pay and restrictions on how automation can be used at ports, according to the association.
Representing members working at American ports from Maine to Texas, the association said Monday that USMX continues to “block the path” towards an agreement by refusing the association’s demands for a “fair and decent contract.”
“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing,” the association stated. The group is the largest union of maritime workers in North America.
Some ILA members work at the Port of Virginia, which suspended operations on Monday in anticipation of the work stoppage. It’s uncertain how long the stoppage will last, or the full impact on delayed shipments of goods to stores and businesses.
Analysts at Sea-Intelligence, a Copenhagen-based shipping advisory firm, told Reuters in August that the backlog from a one-day strike could take between four to six days to clear.
“Our hope is for a speedy resolution that allows The Port of Virginia to implement its resumption of operations plan to methodically and safely bring terminals back online,” representatives of the Port of Virginia said in a statement.
Until an agreement is reached, the Port of Virginia said operations at the following areas would be closed:
Norfolk International Terminals
Virginia International Gateway
Newport News Marine Terminal
Pinners Point Container Yard
Portsmouth Chassis Yard
Reefer Service Area
The Damage Annex
The offices of the Virginia Port Authority, Virginia International Terminals and Hampton Roads Chassis Pool II are open according to their regular schedules.
Portsmouth Marine Terminal will remain open. Richmond Marine Terminal and Virginia Inland Port will also stay open, but customers should expect cargo operations to be impacted.
According to last May’s State of the Port, a total of 3.7 million units of cargo were processed in 2022, a 5% increase since 2021.
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