This article documents a dockworker strike. Information may change rapidly as the event progresses, and initial news reports may be unreliable. The latest updates to this article may not reflect the most current information. (October 2024) |
The 2024 United States port strike is a labor strike involving over 45,000 port workers who are part of the International Longshoremen’s Association (ILA), impacting 36 ports across the United States primarily along the East Coast and the Gulf Coast. The strike began at midnight EST on 1 October 2024 following the expiration of a contract between the port workers and the ports due to disagreements about fair compensation for workers and the use of automation. The strike represented the first strike at East Coast and Gulf Coast ports since 1977.[1]
| 2024 United States port strike | ||||
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| Date | 1 October 2024 – ongoing | |||
| Location | United States East Coast and Gulf Coast ports | |||
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Background
editThe U.S. Maritime Alliance (USMX) negotiated intensively with the International Longshoremen’s Association (ILA) on pay raises, the latter representing East Coast and Gulf Coast port workers which handle 43% to 49% of all U.S. imports, constituting several billions of USD in trade every month.[2] with the latter proposing an opening offer of a gradual pay raise of 77% over the course of the six-year contract to account for several years of smaller wage increases and inflation. The union also demanded that automation be completely banned for port work.[3] The prior contract gave dockworkers starting wages between $20 to $39 per hour based on experience.[4]
Following two days of negotiations, ILA President Harold Daggett, who was part of the union the last time the association held a strike in 1977, told union members that a strike would commence at 12:01 a.m. EST on 1 October if USMX did not meet their demands, which union members gave unanimous support for.[2][5] The ILA requested the pay increase due to inflation in addition to their work helping to greatly increase shipping profits during the COVID-19 pandemic.[4] In a video statement, Daggett threatened United States President Joe Biden's administration with a worker slowdown if they attempted to force members back to work using the Taft-Hartley Act.[2][5]
On the evening of 30 September, the eve of the strike, the U.S. Maritime Alliance proposed a 50% pay raise and a commitment to limited incorporation of automation, but not a complete ban, as means to resume negotiations. The alliance also claimed that they had tripled port employer contributions to worker healthcare and retirement benefits. At night, the ILA made a statement accusing the alliance of refusing to incorporate their requests for a fair contract.[3] The union called the 50% pay raise proposal "unacceptable".[6] USMX accused ILA of refusing to negotiate, and asked labor regulators to command that the union continue them in a formal complaint.[4] ILA dismissed the complaint as a "publicity stunt".[7]
Course of the strike
editIn anticipation of the official start of the strike, workers at the Port of Virginia began systematically halting operations after 8:00 a.m. EST, closing the port gates for truck deliveries at noon, issuing orders for ships to leave the port by 1:00 p.m., and ceasing cargo work at 6 p.m.[3]
At midnight on 1 October, dockworkers outside the Port of Philadelphia began to picket and demonstrate in a circle, chanting: “No work without a fair contract” next to a union truck bearing a message decrying the impact of automation on job security and workers' families. About fifty Port Houston dockworkers began to picket at 11 p.m. CST.[3]
Other involved ports included the Port of New York and New Jersey, Port Wilmington (which deals with about 25% of the nation's banana supply), the Port of Baltimore (the U.S.'s largest auto importer), Port of Norfolk, Port of Charleston, Port of Savannah, Port of Jacksonville, PortMiami, Port Tampa Bay, Port of Mobile, Port of New Orleans, and Port of Houston, preventing the unloading of all cargo across all ports involved.[2][6]
Impact
editEstimates
editExperts in supply chains stated that while the strike likely would not generally cause immediate significant impacts, that it could cause a drastic interruption in the United States' supply chain in a few weeks, causing delays in products reaching businesses and higher prices. They also predicted that the strike would also significantly hamper West Coast port operations. Perishable items such as fruits and vegetables, on the other hand, were predicted to have immediate impacts on supply due to the strike-impacted ports working with large proportions of the United States' supplies (e.g. handling 75% of the U.S.'s supply of bananas).[3]
Economists predicted that the slowing of industrial and consumer goods and resulting price hikes could significantly hinder the economy following its gradual improvement against inflation. The Anderson Economic Group estimated that the U.S. economy would lose $2.1 billion from a one-week strike, $1.5 billion due to the loss in value or degradation of items such as perishable goods, $400 million for transportation company losses, and $200 million in lost wages for the striking port workers. The research group further predicted that the losses per day would accelerate the longer the strike went on.[6] J.P. Morgan estimated a higher $3.8 billion to $4.5 billion loss per day for the economy for the length of the strike, with some losses recovered following the strike's end.[3]
United States Analysts at Sea Intelligence estimated that $3.7 billion in un-handled freight would be lost per day by the strike in East Coast ports alone, based on them handling an estimated 74,000 shipping containers per day for 24 October worth an average of about $50,000. The organization also predicted that it would take five days to resume normal port operations following a one-day long strike, and it would take until mid-November until port operation and supply chain slowdowns stopped after a one-week long strike.[2][5] Economist Grace Zemmer estimated that the strike could cause a temporary loss of employment for over 100,000 people.[4]
Responses
editGovernment
editTwo days before the strike on 29 September, United States President Joe Biden stated that he would not intervene in the strike when asked by reporters. On 30 September, he ordered National Economic Council Director Lael Brainard and White House Chief of Staff Jeff Zients to talk with USMX's leadership to convince them to quickly work out a fair deal, which did not prevent the strike.[3] The United States Chamber of Commerce insisted that Biden take action to stop the strike, recalling the negative impact supply chain delays and shortages caused to the economy during the COVID-19 pandemic early in Biden's presidency.[4]
Governor of New York Kathy Hochul released a statement just prior to the onset of the strike, assuring that the state was taking special efforts to provide healthcare facilities and grocery stores with essential goods.[2]
Unions
editThe Transportation Trades Department (TTD) of the AFL-CIO released a public statement prior to the strike in support of the organization and its aims, and accused the port employers of knowingly delaying contract negotiations to the last moment despite knowing the damage it would cause to American consumers and the U.S. economy, and using it to put the blame on workers.[7]
The International Brotherhood of Teamsters issued a statement expressing solidarity towards striking port workers and the ILA, while also urging the Biden administration to "stay the f**k out of this fight [sic]".[8]
See also
editReferences
edit- ^ "East Coast port strike looms for first time since 1977. Here's what to know. - CBS News". CBS News. 2024-09-30. Retrieved 2024-10-01.
- ^ a b c d e f LaRocco, Lori Ann (2024-10-01). "East and Gulf Coast ports strike, with ILA longshoremen walking off job from New England to Texas, stranding billions in trade". CNBC. Retrieved 2024-10-01.
- ^ a b c d e f g "Dockworkers at ports from Maine to Texas go on strike, a standoff risking new shortages". AP News. 2024-09-30. Retrieved 2024-10-01.
- ^ a b c d e "US ports shut down as dockworkers strike". BBC. Retrieved 2024-10-01.
- ^ a b c LaRocco, Lori Ann (2024-09-05). "Port union voices unanimous support for strike, escalating U.S. supply chain fears". CNBC. Retrieved 2024-10-01.
- ^ a b c Yurkevich, Vanessa; Isidore, Chris (2024-09-30). "Time running out to avoid crippling US ports strike | CNN Business". CNN. Retrieved 2024-10-01.
- ^ a b Sainato, Michael (2024-10-01). "About 45,000 workers begin strike at US ports after breakdown in union talks". The Guardian. ISSN 0261-3077. Retrieved 2024-10-01.
- ^ Deniz, Kara (2024-10-01). "Teamsters Stand With The International Longshoremen's Association". International Brotherhood of Teamsters. Retrieved 2024-10-01.