A strike at key US East Coast and Gulf of Mexico ports is set to begin on Tuesday, the International Longshoremen’s Association (ILA) announced on Sunday. This move threatens to disrupt vital supply chains across the nation. The strike is a response to the United States Maritime Alliance's (USMX) refusal to address what the union calls "a half-century of wage subjugation."
USMX, which represents employers in the East and Gulf Coast longshore industry, has yet to comment. If the strike proceeds, it will be the first coast-wide ILA strike since 1977, impacting ports that handle roughly half of the nation's ocean shipping, from Maine to Texas. Key sectors such as food and automobile imports could be severely affected, potentially causing economic disruptions just weeks before the US presidential election.
There are no planned negotiations before the strike deadline at midnight Monday, and the union has confirmed that military cargo shipments and cruise ship traffic will not be impacted.
The White House has been in contact with both parties, urging a swift and fair resolution. White House spokesperson Robyn Patterson confirmed that senior officials communicated with USMX and ILA representatives to seek a "fair agreement that reflects the success of the companies."
President Joe Biden has stated that he does not plan to intervene using the Taft-Hartley Act, which allows for an 80-day cooling-off period in labor disputes that pose a threat to national security. This decision was first reported by Reuters earlier in September.
The potential strike is causing significant concern among US businesses. Business Roundtable, representing major business leaders, warned that a labor stoppage could cost the US economy billions of dollars daily, impacting businesses, workers, and consumers alike. The group is urging both parties to reach an agreement before Monday night’s deadline.
The strike comes after months of threats from the ILA, which represents workers at 36 ports. The union is demanding significant wage increases and a halt to terminal automation projects, citing long-standing grievances with employers like Maersk and APM Terminals North America.
The dispute is unsettling companies that rely on ocean shipping for both exports and critical imports, raising concerns about the broader impact on the economy.
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