First Time After 1977 US Dockworkers Begin Strike At 14 Major Ports, Impacts Economy

Dockworkers along the US East and Gulf Coasts commenced a strike early Tuesday after negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) failed to produce a new labor contract. The strike began at 12:01 am at the Port of Virginia and affects major container ports including New York/New Jersey, Savannah, New Orleans, and Houston.

The strike, the ILA’s first since 1977, follows months of stalled negotiations and could have a significant impact on the US economy, particularly as it unfolds ahead of the November presidential election. The expired contract covers 25,000 ILA members working at 14 major US ports.

The ILA is seeking protection against job losses due to automation and substantial wage increases. Meanwhile, USMX offered a package including a nearly 50% wage increase, enhanced retirement benefits, and retention of existing language on automation. However, no agreement was reached by midnight Monday, and the strike commenced shortly after.

New York Governor Kathy Hochul reassured the public that essential goods would not be affected immediately, though prolonged disruptions could impact items like automobiles and fresh produce. Analysts estimate that the strike could cost the US economy $4.5 billion to $7.5 billion per week.

US President Joe Biden has refrained from intervening, emphasizing the importance of respecting collective bargaining rights, though business groups may push for action if the strike drags on.