HOUSTON – A strike that is potentially just weeks away has the potential to have a weeks-long—if not months-long—long impact on the U.S. economy.
The International Longshoremen’s Association (ILA) is nearing the end of its contract with the United States Maritime Association (USMX), which represents “employers of the East and Gulf Coast longshore industry.” This includes container carriers, marine terminal operations and port associations.
The contract ends at midnight on Oct. 1, 2024.
If the two sides don’t come an agreement by then, a strike is almost certain.
“There’s a real chance we won’t have a new agreement in place,” said ILA President Harold Daggett. “We could be hitting the streets at 12:01 a.m. on Tuesday, Oct. 1, 2024.”
ILA rank-and-file members are set to strike over pay, compensation and the continued introduction of automation to the industry.
“We’re prepared to fight against automation,” ILA Vice President Dennis Daggett said. “We do not believe that robotics should take over a human being’s job, especially a human being that historically performed that job.”
Roughly 45,000 dockworkers are among those willing to strike at 36 ports along the East and Gulf Coasts.
That includes Port Houston, the nation’s largest port by tonnage.
If work comes to stop on Oct. 1, supplies and products that you use in everyday life could be impacted in the long run.
While holiday gifts have already been imported ahead of the anticipated strike, the economic impact of one day of a strike is inevitable. Products will still make their way into the U.S. via West Coast ports, but costs could rise and delays could be possible.
- “It would take 6 days to clear the backlog from 1 day of strike,” said Sea Intelligence, a global supply chain analysis firm. “If the ports have just a little more excess capacity available, this would more realistically bring this figure down to 4-5 days. However, this means that a 1-week strike in the beginning of October, would not be cleared until mid-November. If we get a 2-week strike, then realistically, the ports would not be back to normal operations until we are into 2025.”
That’s bad news for consumers and bad news for business.
“One day is too long of a shutdown,” said George Goldman, president and CEO of CMA CGM Group, the world’s third-largest container shipper. “The moment you close the door, things begin to back up. So we are not in any way looking forward to having any shutdown on any coast.”
Port Houston handles more imports and exports than any other port in the nation. Our top commodities include oil, cargo containers, steel, dry goods and bulk goods.
With a strike on the horizon, Port Houston is taking proactive steps to prepare for the work stoppage.
These include encouraging shipments to be picked up, potentially extending port hours before and after a strike and waiving certain fees.
“Nobody really wants a strike. But unfortunately, with the labor laws we have in this country, a strike is is one of the few weapons that we have in our arsenal to use,” said Dennis Daggett.
The United States Maritime Alliance responded to a letter that a coalition of 177 trade associations penned a letter to President Joe Biden, asking the president to step in and prevent a strike.
However, analysts believe the president won’t make that move just a month before the election.
STATEMENT FROM USMX:
“USMX is in strong agreement with the 177 trade associations who are calling for the immediate resumption of negotiations with the ILA to work out a new Master Contract agreement that recognizes their vital contributions, while avoiding an unnecessary and disruptive strike that would be harmful to all parties. We have tremendous respect for the ILA and its members, but it is disappointing that we have reached this point where the ILA is unwilling to reopen dialogue unless all of its demands are met. The only way to resolve this impasse is to resume negotiations, which we are willing to do at any time. We understand and appreciate the concern from these trade associations, who realize what is at stake if negotiations are unable to progress, and we call on the ILA to return to bargaining so we can reach a new deal before the expiration of our current agreement, something we continue to believe is possible if the other side is willing to meet.”
KPRC 2 asked both the union and the alliance of companies for an interview for this report. Both declined and deferred to previously published statements.