U.S. Dockworkers Threaten Strike Amid Stalled Negotiations

Port of New York
Ports & Logistics The Americas
By
Updated Published

Tensions are rising as dockworkers on the U.S. East and Gulf Coasts prepare for a possible strike. The deadlock in talks between the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) has set the stage for potential labor action, with the ILA signaling readiness to walk off the job as early as October 1 if no agreement is reached by the end of September.

The dispute centers on ongoing contract negotiations that began in 2022, with key sticking points including concerns about job security due to port automation, wages, retirement benefits, and working conditions.

One notable issue is the pay disparity: ILA workers in New York and New Jersey reportedly earn about 55% of the wages of their counterparts in the International Longshore and Warehouse Union (ILWU), prompting demands for a raise.

The ILA has made it clear they will not extend work past the contract’s expiration on September 30 without a deal in place.

Given that ports on the East and Gulf Coasts account for around 43% of U.S. imports, a strike would have significant repercussions. Already strained global supply chains, impacted by disruptions in the Red Sea, could face further delays. The timing is particularly critical, with the holiday season approaching and heightened political sensitivities due to the U.S. presidential election cycle, leading to a surge in cargo volumes.

The current labor contract covers around 14,500 workers across 36 ports. If a strike occurs, it could leave billions of dollars worth of goods stranded, leading to steep demurrage and detention fees for shippers, and creating lasting disruptions akin to those caused by the recent attacks in the Red Sea.

Experts warn that each day of the strike could add four to six days of backlog, intensifying supply chain bottlenecks.

In light of the looming threat, organizations like the National Retail Federation, along with the Biden Administration and various importers and exporters, are urging the ILA to return to the negotiating table. However, ILA president Harold Daggett has indicated that the two sides remain deeply divided, particularly over economic issues outlined by the union.