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.
Striking US port workers sound resolute note: ‘This is for our future generations’
Edward Helmore in Elizabeth, New Jersey
Edward Helmore in Elizabeth, New Jersey
THE GUARDIAN
Thu 3 October 2024
Dockworkers strike outside of the Port of Newark in Elizabeth, New Jersey, on 1 October 2024.Photograph: Spencer Platt/Getty Images
A parade of tractors without their trailers made their way through the Port Newark-Elizabeth Marine terminal on Wednesday morning, blaring their horns, to cheers from the picket lines.
Tens of thousands of longshoremen walked off the job at dozens of ports across the east and Gulf coasts earlier this week. The Port Authority of New York and New Jersey confirms most operations have been shut down as a result of the strike.
On the picket lines at Elizabeth, New Jersey – one of the largest container ports in the US – strikers have been instructed to man the picket lines 24 hours a day, seven days a week, until the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) reach a deal.
“If a monsoon comes, we’re gonna stay out, because we’re used to working in a monsoon,” one striker said. The warm October sun was shining – at least for now.
Disagreements over pay and the automation of machinery are at the heart of the dispute.
Joe Mosquera, a crane operator and union organizer with ILA, local 1235, said its goals were straightforward. “The action is going to give us a fair contract and we can get back to work to get people the goods they need,” he said. “This is for our future generations. To keep automation out is to keep our jobs for the future. And if anything becomes automated, we want to make sure that there’s a worker to back it up.”
The ILA has not had a new contract for six years. “We honored our last contract,” said Mosquera, “even through Covid when we had to work double or triple. We never shut down, so everybody could get their goods. We didn’t ask for a pay raise. We didn’t walk out to try to get leverage when we could have, because we were honoring our agreement.”
Mosquera, 47, is a third-generation longshoreman in his family. His grandfather was hired in 1954, and he hoped his family would work at the port for generations to come. “I hope to keep it going, yes,” he said.
Iwona Purwin, an inventory checker who has worked at the port since 1998, said she had been out all night and the strikers would stay for “as long as it takes”. “I would like to see no automation take place at all and for the American people to keep their jobs.”
The port management “are trying to take our jobs”, Purwin said. “I’m a single mom of three. How would I provide for my family if I’m not working?”
Related: Biden urges port operators to increase wages after 45,000 workers go on strike
Purwin, 46, drives an hour to work each day from central New Jersey, and described how she had shouldered increases “in gas prices, tolls and everything else. We’re not getting paid for any of this stuff. We didn’t get a raise for inflation or for anything else. We were essential workers. We worked through Covid. And we didn’t ask for anything.”
The demands of the union workers, she said, had been mischaracterized. “They don’t understand how much we work and the sacrifices we make for our families. It’s not a nine-to-five job. This is seven days a week around the clock, so we’re here, often more than we are with our families.”
Questions have been raised about the strike’s potential impact on Thanksgiving and the holiday season. Mosquera expressed hope that a deal will come sooner. “I’m a father and a husband, I worry about everything,” he said. “I hope it will not last that long. We demand a fair contract, so we can get back to work.”
Thu 3 October 2024
Dockworkers strike outside of the Port of Newark in Elizabeth, New Jersey, on 1 October 2024.Photograph: Spencer Platt/Getty Images
A parade of tractors without their trailers made their way through the Port Newark-Elizabeth Marine terminal on Wednesday morning, blaring their horns, to cheers from the picket lines.
Tens of thousands of longshoremen walked off the job at dozens of ports across the east and Gulf coasts earlier this week. The Port Authority of New York and New Jersey confirms most operations have been shut down as a result of the strike.
On the picket lines at Elizabeth, New Jersey – one of the largest container ports in the US – strikers have been instructed to man the picket lines 24 hours a day, seven days a week, until the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) reach a deal.
“If a monsoon comes, we’re gonna stay out, because we’re used to working in a monsoon,” one striker said. The warm October sun was shining – at least for now.
Disagreements over pay and the automation of machinery are at the heart of the dispute.
Joe Mosquera, a crane operator and union organizer with ILA, local 1235, said its goals were straightforward. “The action is going to give us a fair contract and we can get back to work to get people the goods they need,” he said. “This is for our future generations. To keep automation out is to keep our jobs for the future. And if anything becomes automated, we want to make sure that there’s a worker to back it up.”
The ILA has not had a new contract for six years. “We honored our last contract,” said Mosquera, “even through Covid when we had to work double or triple. We never shut down, so everybody could get their goods. We didn’t ask for a pay raise. We didn’t walk out to try to get leverage when we could have, because we were honoring our agreement.”
Mosquera, 47, is a third-generation longshoreman in his family. His grandfather was hired in 1954, and he hoped his family would work at the port for generations to come. “I hope to keep it going, yes,” he said.
Iwona Purwin, an inventory checker who has worked at the port since 1998, said she had been out all night and the strikers would stay for “as long as it takes”. “I would like to see no automation take place at all and for the American people to keep their jobs.”
The port management “are trying to take our jobs”, Purwin said. “I’m a single mom of three. How would I provide for my family if I’m not working?”
Related: Biden urges port operators to increase wages after 45,000 workers go on strike
Purwin, 46, drives an hour to work each day from central New Jersey, and described how she had shouldered increases “in gas prices, tolls and everything else. We’re not getting paid for any of this stuff. We didn’t get a raise for inflation or for anything else. We were essential workers. We worked through Covid. And we didn’t ask for anything.”
The demands of the union workers, she said, had been mischaracterized. “They don’t understand how much we work and the sacrifices we make for our families. It’s not a nine-to-five job. This is seven days a week around the clock, so we’re here, often more than we are with our families.”
Questions have been raised about the strike’s potential impact on Thanksgiving and the holiday season. Mosquera expressed hope that a deal will come sooner. “I’m a father and a husband, I worry about everything,” he said. “I hope it will not last that long. We demand a fair contract, so we can get back to work.”
Dockworkers go on strike for the first time in almost 50 years. What's impacted and how long will it last?
Union President Harold Dagget warned in a Sept. video that the coastwide strike would "cripple" the U.S. economy.
Katie Mather
·Reporter
Wed, October 2, 2024
Workers picket outside of the Red Hook Container Terminal in Brooklyn on Oct. 1. (Michael Nigro/Getty Images)
Around 45,000 dockworkers went on strike Tuesday for the first time in almost 50 years, in a move that could temporarily put up to 105,000 workers out of work.
Thirty-six East and Gulf Coast ports from Maine to Texas are affected after labor negotiations stalled between the International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, and the U.S. Maritime Alliance (USMX), which represents the employers of the longshore industry.
The strike could result in one of the greatest supply chain disruptions since COVID-19.
“If it lasts for more than a few days or more than a week, you’re going to get massive cascading effects,” Ryan Peterson, the founder and CEO of Flexport, told Yahoo Finance. Peterson added that the stoppage would affect 15% of the world’s container ships.
Why did the dockworkers go on strike?
Simply put: The ILA wants higher wages. USMX said in a statement that it has been negotiating contracts with the ILA since May.
"Our members top out at $39 (per hour). We are looking for a 77%, close to 77% increase over the next seven years. When you look at the cost of inflation, that's more than reasonable," Johnnie Dixon, president of the Fort Lauderdale chapter of the ILA, told CBS News.
On Sept. 26, USMX filed an Unfair Labor Practice (ULP) with the National Labor Relations Board in an attempt to legally require the ILA to keep bargaining and not go on strike.
A source told Reuters that USMX made a new offer on Monday to try to curtail the strike from happening, but ILA called it “an unacceptable wage package that we reject.”
What products are affected by the port strike?
In an ILA video uploaded to YouTube last month, ILA President Harold Daggett warned that the coastwide strike would “cripple” the U.S. economy. “Everything in the United States comes on a ship,” he said.
Nonperishable goods, like fresh fruit and vegetables, will be most affected — especially imports coming from Central and South America. The American Farm Bureau Federation (AFBF) reports that 75% of bananas in the U.S. come in through ILA ports, along with almost 90% of cherries, 82% of hot peppers, 80% of chocolate and 85% of canned food.
A majority of U.S. imports of beer, wine, whiskey, scotch and rum also come into ILA’s ports, as well as more than 100 other categories of food.
The AFBF also noted that U.S. exports sent out through ILA ports will be affected, including 80% of the country’s poultry exports, 56% of raw cotton exports, 36% of red meat exports, 30% of dairy product exports and 6% of soybean exports.
“A strike would create backlogs of exports, denying farmers access to a higher price in the world market, leading to a domestic oversupply, driving down prices for key commodities … and further eroding farm profitability,” the AFBF reported. “On the import side, shortages and delays would raise costs for consumers — particularly for perishable goods.”
It's not just food that will be affected
Almost 180 trade associations that represent companies across numerous industries warned that the strike would be “devastating” in a Sept. 17 letter to President Biden. These industries include automakers, chain drugstores, retailers, toy companies and furniture manufacturers.
What is the economic impact?
Experts have estimated that the strike could cost the U.S. economy $540 million or up to $5 billion daily.
If the strike lasts for more than a few weeks, it could negatively impact supply chains, cause shortages or increase prices. Experts say consumers will likely not notice a difference for at least a few weeks.
Depending on the length of the strike, which will affect the shortages of goods, consumers could experience price hikes and economic setbacks, similar to postpandemic supply chain issues.
Sea-Intelligence, a shipping advisory firm based in Copenhagen, Denmark, estimated that it would take anywhere from four to six days to clear the backlog that accumulated following just a one-day strike. Should the strike last a week, the group anticipates recovery will last longer than a month.
Poll by US Chamber finds voters want Biden to halt potential port strike
Port strike could throttle imports from cars to bananas and vaccines
US dockworkers launch mass strike a month before election
John BIERS
Tue, October 1, 2024
The strike was the first by the ILA in almost 50 years, and affects 36 ports from Maine to Texas (Mark Felix) (Mark Felix/AFP/AFP)
Tens of thousands of workers at major ports on the US East and Gulf Coasts went on strike Tuesday in an action that could drag down the world's largest economy just over a month before the presidential election.
The shutdown, the first strike by the International Longshoremen's Association (ILA) in almost 50 years, affects 36 ports from Maine to Texas, which handle an array of goods from food to electronics.
About 45,000 workers are on strike, according to the ILA.
After weeks of stalled talks, the United States Maritime Alliance (USMX), which represents shipping companies and terminal operators, had late Monday expressed some hope of a deal. But there was no agreement before the midnight deadline.
In Elizabeth, New Jersey, trucks passing by honked their horns in support of about 200 striking workers carrying American flags and signs blasting port automation as a job killer.
"Profits over people is unacceptable," one sign read.
A possible stoppage had been telegraphed for months, with the odds rising in recent weeks as the September 30 contract deadline loomed.
Analysts caution that a lengthy strike could pose a major headwind to the US economy, leading to shortages of some items and lifting costs at a time when inflation has been moderating.
The White House said President Joe Biden and Vice President Kamala Harris were "closely monitoring" the strike, with both briefed on government assessments that "impacts on consumers are expected to be limited at this time," according to a statement.
Biden was briefed late Tuesday on the situation and again called for a "strong and fair offer" to the longshoremen, the White House said, singling out "foreign-owned ocean carriers" represented by USMX.
"These foreign companies have seen record profits... and the president believes it is time they present an offer that reflects ILA workers' invaluable contribution to their success," it said.
Under the Taft-Hartley Act, Biden has the authority to order the parties to resume talks for an 80-day "cooling off" period, with union members going back to work during that time.
But Biden has ruled out such a move, citing respect for collective bargaining rights.
The National Retail Federation called on Biden to "immediately" restore operations, including by invoking Taft-Hartley, saying the strike "will have devastating consequences for American workers, their families and local communities."
And former president Donald Trump, who is seeking to take back the Oval Office, blamed Biden for the crisis, saying in Milwaukee: "He should have worked out a deal."
- Automation anxiety -
The first ILA walkout since 1977 follows recent high-profile strikes at US automakers, Boeing and other employers.
The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the Covid-19 pandemic.
Media reports say the ILA is asking for a 77 percent wage increase over six years.
USMX on Tuesday defended its latest offer to increase wages by "nearly 50 percent."
"We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike," USMX said. "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 responded late Tuesday, accusing USMX of attempting to "distort the facts and mislead the public" and offering details about the working conditions of its members.
"Our members feel underappreciated, especially given the sacrifices they made during the pandemic, keeping ports open and the economy moving," it said.
- 'We moved the world' -
Oxford Economics estimated that the strike would dent US gross domestic product by $4.5 billion to $7.5 billion per week. The overall economic hit depends on the length of the strike, analysts say.
Jonita Carter, a dockworker for 23 years, said workers are feeling financially pinched by inflation and anxious about automation.
"We worked during Covid. We never stopped. We moved the world," she told AFP.
Capital Economics said fears about the economic impact of the strike were "overdone," in part because recent shocks to the supply chain have made businesses more aware of the need to bake in precautionary measures.
But Biden would have "little choice" but to take action if the situation worsens, according to the note, "forcing workers to return while negotiations continue."
"There is little chance that the administration would risk jeopardizing its recent economic successes just five weeks before a tightly contested election."
bur-jmb/jul-sst/jgc
Strike over automation fears shuts down operations at 36 ports across the US
Nandika Chatterjee
Tue, October 1, 2024
Dockworkers strike Kevin Dietsch/Getty Images
Union dockworkers from Maine to Texas began walking picket lines early Tuesday in a strike over wages and automation, halting the movement of billions of dollars worth of goods, ABC News reported.
Picketing from the East Coast to the Gulf Coast began shortly after midnight, following unsuccessful negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), the body overseeing ocean carriers and port operators, over a new contract. The strike, if it continues, could cause supply shortages and increase the price of goods.
The last dock worker contract, which expired on Tuesday at midnight, was between the ports and 45,000 members of the ILA. The strike, the first by the union since 1977, is presently affecting operations at 36 ports, according to ABC News.
"USMX brought on this strike when they decided to hold firm to foreign-owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth,” ILA President Harold Daggett said in a statement, NPR reported.
Workers picketing at the Port of Philadelphia started marching in a circle at a rail crossing outside the port, chanting: “No work without a fair contract.” Meanwhile, the union displayed messages on the side of a truck that read, “Automation Hurts Families: ILA Stands For Job Protection.”
Union President Harold Dagget warned in a Sept. video that the coastwide strike would "cripple" the U.S. economy.
Katie Mather
·Reporter
Wed, October 2, 2024
Workers picket outside of the Red Hook Container Terminal in Brooklyn on Oct. 1. (Michael Nigro/Getty Images)
Around 45,000 dockworkers went on strike Tuesday for the first time in almost 50 years, in a move that could temporarily put up to 105,000 workers out of work.
Thirty-six East and Gulf Coast ports from Maine to Texas are affected after labor negotiations stalled between the International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, and the U.S. Maritime Alliance (USMX), which represents the employers of the longshore industry.
The strike could result in one of the greatest supply chain disruptions since COVID-19.
“If it lasts for more than a few days or more than a week, you’re going to get massive cascading effects,” Ryan Peterson, the founder and CEO of Flexport, told Yahoo Finance. Peterson added that the stoppage would affect 15% of the world’s container ships.
Why did the dockworkers go on strike?
Simply put: The ILA wants higher wages. USMX said in a statement that it has been negotiating contracts with the ILA since May.
"Our members top out at $39 (per hour). We are looking for a 77%, close to 77% increase over the next seven years. When you look at the cost of inflation, that's more than reasonable," Johnnie Dixon, president of the Fort Lauderdale chapter of the ILA, told CBS News.
On Sept. 26, USMX filed an Unfair Labor Practice (ULP) with the National Labor Relations Board in an attempt to legally require the ILA to keep bargaining and not go on strike.
A source told Reuters that USMX made a new offer on Monday to try to curtail the strike from happening, but ILA called it “an unacceptable wage package that we reject.”
What products are affected by the port strike?
In an ILA video uploaded to YouTube last month, ILA President Harold Daggett warned that the coastwide strike would “cripple” the U.S. economy. “Everything in the United States comes on a ship,” he said.
Nonperishable goods, like fresh fruit and vegetables, will be most affected — especially imports coming from Central and South America. The American Farm Bureau Federation (AFBF) reports that 75% of bananas in the U.S. come in through ILA ports, along with almost 90% of cherries, 82% of hot peppers, 80% of chocolate and 85% of canned food.
A majority of U.S. imports of beer, wine, whiskey, scotch and rum also come into ILA’s ports, as well as more than 100 other categories of food.
The AFBF also noted that U.S. exports sent out through ILA ports will be affected, including 80% of the country’s poultry exports, 56% of raw cotton exports, 36% of red meat exports, 30% of dairy product exports and 6% of soybean exports.
“A strike would create backlogs of exports, denying farmers access to a higher price in the world market, leading to a domestic oversupply, driving down prices for key commodities … and further eroding farm profitability,” the AFBF reported. “On the import side, shortages and delays would raise costs for consumers — particularly for perishable goods.”
It's not just food that will be affected
Almost 180 trade associations that represent companies across numerous industries warned that the strike would be “devastating” in a Sept. 17 letter to President Biden. These industries include automakers, chain drugstores, retailers, toy companies and furniture manufacturers.
What is the economic impact?
Experts have estimated that the strike could cost the U.S. economy $540 million or up to $5 billion daily.
If the strike lasts for more than a few weeks, it could negatively impact supply chains, cause shortages or increase prices. Experts say consumers will likely not notice a difference for at least a few weeks.
Depending on the length of the strike, which will affect the shortages of goods, consumers could experience price hikes and economic setbacks, similar to postpandemic supply chain issues.
Sea-Intelligence, a shipping advisory firm based in Copenhagen, Denmark, estimated that it would take anywhere from four to six days to clear the backlog that accumulated following just a one-day strike. Should the strike last a week, the group anticipates recovery will last longer than a month.
Poll by US Chamber finds voters want Biden to halt potential port strike
Port strike could throttle imports from cars to bananas and vaccines
US dockworkers launch mass strike a month before election
John BIERS
Tue, October 1, 2024
The strike was the first by the ILA in almost 50 years, and affects 36 ports from Maine to Texas (Mark Felix) (Mark Felix/AFP/AFP)
Tens of thousands of workers at major ports on the US East and Gulf Coasts went on strike Tuesday in an action that could drag down the world's largest economy just over a month before the presidential election.
The shutdown, the first strike by the International Longshoremen's Association (ILA) in almost 50 years, affects 36 ports from Maine to Texas, which handle an array of goods from food to electronics.
About 45,000 workers are on strike, according to the ILA.
After weeks of stalled talks, the United States Maritime Alliance (USMX), which represents shipping companies and terminal operators, had late Monday expressed some hope of a deal. But there was no agreement before the midnight deadline.
In Elizabeth, New Jersey, trucks passing by honked their horns in support of about 200 striking workers carrying American flags and signs blasting port automation as a job killer.
"Profits over people is unacceptable," one sign read.
A possible stoppage had been telegraphed for months, with the odds rising in recent weeks as the September 30 contract deadline loomed.
Analysts caution that a lengthy strike could pose a major headwind to the US economy, leading to shortages of some items and lifting costs at a time when inflation has been moderating.
The White House said President Joe Biden and Vice President Kamala Harris were "closely monitoring" the strike, with both briefed on government assessments that "impacts on consumers are expected to be limited at this time," according to a statement.
Biden was briefed late Tuesday on the situation and again called for a "strong and fair offer" to the longshoremen, the White House said, singling out "foreign-owned ocean carriers" represented by USMX.
"These foreign companies have seen record profits... and the president believes it is time they present an offer that reflects ILA workers' invaluable contribution to their success," it said.
Under the Taft-Hartley Act, Biden has the authority to order the parties to resume talks for an 80-day "cooling off" period, with union members going back to work during that time.
But Biden has ruled out such a move, citing respect for collective bargaining rights.
The National Retail Federation called on Biden to "immediately" restore operations, including by invoking Taft-Hartley, saying the strike "will have devastating consequences for American workers, their families and local communities."
And former president Donald Trump, who is seeking to take back the Oval Office, blamed Biden for the crisis, saying in Milwaukee: "He should have worked out a deal."
- Automation anxiety -
The first ILA walkout since 1977 follows recent high-profile strikes at US automakers, Boeing and other employers.
The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the Covid-19 pandemic.
Media reports say the ILA is asking for a 77 percent wage increase over six years.
USMX on Tuesday defended its latest offer to increase wages by "nearly 50 percent."
"We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike," USMX said. "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 responded late Tuesday, accusing USMX of attempting to "distort the facts and mislead the public" and offering details about the working conditions of its members.
"Our members feel underappreciated, especially given the sacrifices they made during the pandemic, keeping ports open and the economy moving," it said.
- 'We moved the world' -
Oxford Economics estimated that the strike would dent US gross domestic product by $4.5 billion to $7.5 billion per week. The overall economic hit depends on the length of the strike, analysts say.
Jonita Carter, a dockworker for 23 years, said workers are feeling financially pinched by inflation and anxious about automation.
"We worked during Covid. We never stopped. We moved the world," she told AFP.
Capital Economics said fears about the economic impact of the strike were "overdone," in part because recent shocks to the supply chain have made businesses more aware of the need to bake in precautionary measures.
But Biden would have "little choice" but to take action if the situation worsens, according to the note, "forcing workers to return while negotiations continue."
"There is little chance that the administration would risk jeopardizing its recent economic successes just five weeks before a tightly contested election."
bur-jmb/jul-sst/jgc
Strike over automation fears shuts down operations at 36 ports across the US
Nandika Chatterjee
Tue, October 1, 2024
Dockworkers strike Kevin Dietsch/Getty Images
Union dockworkers from Maine to Texas began walking picket lines early Tuesday in a strike over wages and automation, halting the movement of billions of dollars worth of goods, ABC News reported.
Picketing from the East Coast to the Gulf Coast began shortly after midnight, following unsuccessful negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), the body overseeing ocean carriers and port operators, over a new contract. The strike, if it continues, could cause supply shortages and increase the price of goods.
The last dock worker contract, which expired on Tuesday at midnight, was between the ports and 45,000 members of the ILA. The strike, the first by the union since 1977, is presently affecting operations at 36 ports, according to ABC News.
"USMX brought on this strike when they decided to hold firm to foreign-owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth,” ILA President Harold Daggett said in a statement, NPR reported.
Workers picketing at the Port of Philadelphia started marching in a circle at a rail crossing outside the port, chanting: “No work without a fair contract.” Meanwhile, the union displayed messages on the side of a truck that read, “Automation Hurts Families: ILA Stands For Job Protection.”
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
Wed, October 2, 2024
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
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.
Port of Virginia and 35 others go on strike; Gov. Youngkin issues statement
Monique Calello, Staunton News Leader
Wed, October 2, 2024
Dockworkers at ports from Maine to Texas officially went on strike Monday. Thirty-six East and Gulf coast ports shut down, including the Port of Virginia, as 45,000 union workers walked off the job after labor negotiations over higher pay and protections against automation stalled between the International Longshoremen's Association and the United States Maritime Alliance, or USMX, according to a report in USA TODAY.
The ILA strike has the potential to cost the economy up to $5 billion a day, upend holiday shopping for millions of Americans and dictate whether many small- and medium-size businesses and farmers turn a profit or lose money this year, experts said.
The strike could also affect availability of a range of goods from bananas and coffee to clothing and cars shipped via container, while creating weeks-long backlogs at ports resulting in the potential for short supply and stockpiling by consumers. It could also stoke shipping cost increases that may be passed on to consumers, according to logistics experts.
In response to the strike, Governor Glenn Youngkin issued a statement Tuesday calling on the federal government to resolve it, that it jeopardizes the livelihoods of countless Americans and cripples supply chains nationwide, according to a press release from the governor's office.
"Every day this strike of Port Workers along the East and Gulf Coasts continues, the economic impacts intensify, affecting livelihoods, supply chains and prices," said Youngkin. "The economic fallout from the work stoppage at The Port of Virginia extends well beyond the Commonwealth, as the Port manages approximately $66 billion in essential imports, with nearly 60 percent destined for locations outside of Virginia. As a cornerstone of Virginia's economy, the Port supports 10 percent of the gross state product and supports employment for over half a million jobs in Virginia.
"The time for leadership is now, President Biden has the tools to remedy this situation for the Commonwealth of Virginia and the nation, including utilizing provisions of the Taft-Hartley Act. The well-being of Virginia and American workers, as well as the health of our economy, depends on a swift resolution to this strike. A failure to lead will only drive-up prices, disrupt trade, and exacerbate the challenges already faced by Virginians and Americans."
Read Governor Youngkin’s Letter to President Biden on the port strike here.
More: Queen City Word Fest will bring authors, readers together in downtown Staunton
Why is Biden not stopping the strike?
On Monday, Biden explained his position on the negotiations.
“Collective bargaining is the best way for workers to get the pay and benefits they deserve. I have urged USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the workers of the International Longshoremen’s Association that ensures they are paid appropriately in line with their invaluable contributions. 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. 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.
“As our nation climbs out of the aftermath of Hurricane Helene, dockworkers will play an essential role in getting communities the resources they need. Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits. My Administration will be monitoring for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board.
“It is time for USMX to negotiate a fair contract with the longshoremen that reflects the substantial contribution they’ve been making to our economic comeback.”
More: Staunton NAACP to host local candidate forum at Blackfriars Playhouse
The Port of Virginia impacts over half a million jobs across the Commonwealth
The Port of Virginia directly employs over 450 people, including approximately 2,600 longshoreman and around an equal number of truckers and there are nearly 9,500 jobs supported directly by the port and harbor operations. Virginia economic impacts of the Port of Virginia include:
$124.1 billion in output sales
$63.0 billion in Virginia gross state product
$41.4 billion in Virginia labor income
565,000 full- and part-time jobs
$5.8 billion in state and local taxes and fees
Virginia has access to consumers with 75% of the U.S. population within a two-day drive.
The Virginia Port is able to handle a variety of container exports through nearly 30 international shipping line services with connections to more than 200 countries, provides global market access for Virginia businesses through easy access to the open sea, the release said.
The Port of Virginia handled 14.3 million tons of containerized imports worth an estimated $66 billion.
This article originally appeared on Staunton News Leader: Gov. Youngkin calls on federal government to end port workers strike
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