Longshoremen at ports from Maine to Texas began picketing early Tuesday in a strike over wages and automation that could reignite inflation and cause goods shortages if it lasts more than a few weeks.
The contract between the ports and the around 45,000 members of the International Longshoremen’s Association (ILA) expired at midnight, and although progress in negotiations was reported on Monday, workers went on strike. The strike, which affects 36 ports, is the first called by the union since 1977.
Workers began picketing the port of Philadelphia shortly after midnight, walking in circles at a railroad crossing outside the port and chanting “Without a fair contract there will be no work.”
The union had banners with messages that read “Automation hurts families: ILA defends employment protection.”
The city’s union president, Boise Butler, said workers want a fair contract and that automation of their jobs not be allowed.
Butler explained that shipping companies made billions of dollars during the pandemic by charging high prices. “Now we want it back. They are going to give it back to us,” he added.
He said the union will strike as long as necessary to reach a fair agreement and that it has influence over the companies.
“This is not something that starts and ends (…) we are not weak,” he said, pointing to the weight of the union in the country’s economy.
At the port of Houston, at least 50 workers gathered outside with signs that said “Without a fair contract there will be no work.”
The U.S. Maritime Alliance, which represents ports, said late Monday that both sides had moved forward from their previous pay offers. But this did not help to reach an agreement.
The union’s initial offer was a 77% rise in wages over the six-year contract and its president, Harold Daggett, noted that it was necessary to compensate for inflation and years of small increases. ILA members have a base salary of around $81,000 annually, but some can earn $200,000 due to the extensive amount of overtime.
On Monday afternoon, the Alliance announced it had raised its offer to a 50% increase over six years and pledged to maintain limits on automation under the old contract. The union wants a complete ban on automation. The differences between the two parties were not clear.
In a statement early Tuesday, the union said it rejected the latest proposal because it “fell far short of what rank-and-file ILA members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.
The ILA said its proposal triples employer contributions to retirement plans and strengthens health care options.
Supply chain experts say consumers will not see an immediate impact from the strike as most retailers stock up by bringing forward shipments of holiday gift items.
But if the strike continues for more than a few weeks, it would significantly paralyze the country’s supply chain, which could lead to increased prices and delays in the arrival of products to homes and businesses.
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