A significant strike by dockworkers is currently taking place at ports nationwide, as thousands of workers walked off the job just after midnight on Tuesday.
This action has resulted in the closure of numerous ports along the East and Gulf Coasts, driven by disputes over wages and automation. If the strike continues for several weeks, it could potentially reignite inflation and lead to shortages of goods.
As of midnight, 36 ports from Maine to Texas have ceased operations due to the expiration of the contract between these ports and approximately 45,000 members of the International Longshoremen’s Association (ILA). These ports are responsible for handling around half of the goods imported and exported in the U.S.
The strike is expected to have an immediate effect on the supply of perishable imports, such as bananas. The affected ports account for 3.8 million metric tons of bananas annually, which represents 75% of the country’s supply, according to the American Farm Bureau Federation.
Initially, the union proposed a 77% pay raise over the six-year term of the new contract, with President Harold Daggett emphasizing that this increase is essential to compensate for inflation and years of minimal raises. ILA members typically earn a base salary of about $81,000 per year, but some can exceed $200,000 annually with overtime.
On Monday evening, the alliance responded by raising its offer to a 50% increase over six years and committed to maintaining limits on automation established in the previous contract. However, the union is advocating for a complete ban on automation. It remains unclear how far apart the two parties are in their negotiations.
“We are optimistic that this will enable us to resume collective bargaining on the other existing issues in an attempt to reach an agreement,” stated the alliance.
In an early Tuesday statement, the union rejected the alliance’s latest proposal, arguing that it “fell far short of the demands for wages and protections against automation that ILA rank-and-file members are seeking.” The two sides have not engaged in formal negotiations since June.
“We are ready to fight as long as necessary and remain on strike for whatever duration it takes to secure the wages and protections against automation that our ILA members deserve,” Daggett asserted in the statement. “The alliance must meet our demands for the strike to conclude.”
The alliance highlighted that its offer included tripled employer contributions to retirement plans and enhanced healthcare options.
