Officials at 14 ports along the US East and Gulf Coasts were making last-minute preparations on Monday for a likely labor strike that could drag on the U.S. economy just ahead of a presidential election — despite last-minute talks.
Business group United States Maritime Alliance (USMX) announced late in the day that counter-offers had been exchanged with the International Longshoremen’s Association (ILA), but tens of thousands of dockworkers could still walk off the job after midnight at the expiration of their six-year contract unless more concrete progress was made.
“While we have encouraged both sides to reach an amicable agreement at the bargaining table, all signs are that there will be a strike,” Port Authority Executive Director Rick Cotton said Monday at a news conference where New York officials sought to reassure consumers that they would not lose access to food and other essential goods.
A walkout would be the ILA’s first since 1977. The contract directly affects some 25,000 ILA members at 14 large US ports, including New York/New Jersey, Boston, Philadelphia, Savannah, New Orleans and Houston.
“In the last 24 hours, the USMX and ILA have traded counter offers related to wages,” the USMX said in a statement, adding: “We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues — in an effort to reach an agreement.”
A source familiar with the talks told AFP that the offer described by USMX was one already rejected by the ILA.
An ILA representative told AFP he had nothing to add when asked about the statement.
New York Governor Kathy Hochul said port officials were scrambling to clear out as many items as possible before the impending stoppage.
Other ports such as New Orleans and Savannah have offered extended hours in recent days ahead of the deadline.
The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the pandemic.
Shipping interests are engaging in a “disgraceful” effort “to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers,” the ILA said Monday.
USMX said late Monday its new offer would “increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation.”
Media reports say the ILA is asking for a 77 percent wage increase over six years.
USMX also said it had asked for an extension of the current contract to allow for further bargaining.
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.
“A port strike would paralyze US trade and raise prices at a time when consumers and businesses are starting to feel relief from inflation,” said Erin McLaughlin, senior economist at the Conference Board.
“There’s no easy Plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternative options are limited.”
Under the Taft-Hartley Act, President Joe Biden has the authority to order the parties to resume talks for an 80-day “cooling off” period.
But Biden said Sunday he would not intervene in labor negotiations, citing his support of collective bargaining rights.
At Monday’s news conference, New York officials emphasized that they have been preparing for a likely strike.
“We don’t anticipate shortages of essential goods anytime soon,” Hochul said. “People do not need to rush out to the grocery store and stockpile goods like they did during the pandemic.”
Hochul noted that pharmaceutical products will not be affected because they are typically flown in and not sent by ship. State officials are monitoring other medical supplies, but stockpiles are adequate for the foreseeable future, she said.
But Hochul cited automobiles and semiconductors as items that could be affected more quickly. She also said a lengthy strike could limit availability of fresh foods such as bananas.
“The wholesale food supply is resilient here in New York,” Hochul said. “We’re not concerned at all about any shortages of foods overall, maybe individual products.”
