US dockworkers launch mass strike month before election

Tens of thousands of workers at major ports on the US East and Gulf Coasts went on strike Tuesday in action that could drag on the world's largest economy just ahead of the November presidential election.

The International Longshoremen's Association (ILA) said the walkout was the first "coast wide strike in almost 50 years."

The shutdown would halt shipments at 36 ports, impacting an array of goods from food to electronics and potentially costing the US economy billions of dollars a week.

"We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve," Harold Daggett, who heads the 85,000-member union, said in a statement.

Read also

US port officials gird for strike as labor talks stay stuck

The strike presents a thorny challenge to the White House and Vice President Kamala Harris's campaign, as both seek to bolster a pro-union image while preventing any economic fallout so close to the election.

President Joe Biden has ruled out federal intervention, but business lobbies are sure to amplify calls for action if the strike drags out.

Biden and Harris are "closely monitoring" the strike, the White House said, with both briefed on government assessments that "impacts on consumers are expected to be limited at this time."

"The president has directed his team to convey his message directly to both sides that they need to be at the table and negotiating in good faith—fairly and quickly," it added.

The ILA said it had "shut down all ports from Maine to Texas at 12:01 am on Tuesday" after it rejected a final proposal from the United States Maritime Alliance (USMX) shipping group.

Read also

Officials see no shortages from likely US port strike

USMX did not respond to a request for comment.

ILA members began picketing at 14 major ports on the East and Gulf coasts soon after the announcement.

In Boston, dockworkers marched to the port carrying signs that read "no work without a fair contract," videos shared on social media showed.

A possible stoppage had been telegraphed for months, with the odds rising in recent weeks as the two sides described themselves as far apart.

USMX said on Monday it was "hopeful" after the two sides exchanged counter-offers.

However, there was still no deal when the six-year contract expired at midnight.

Oxford Economics estimated that the strike would dent US gross domestic product by $4.5 billion to $7.5 billion per week. The overall economic hit depends on the length of the strike, analysts say.

Fighting automation

The first ILA walkout since 1977 follows high-profile strikes at US automakers, Boeing and other employers.

Read also

US ports brace for potential dockworkers strike

The contract directly affects about 25,000 ILA members at 14 large US ports, including New York/New Jersey, Boston, Philadelphia, Savannah, New Orleans and Houston.

New York Governor Kathy Hochul said on Monday port officials were scrambling to clear out as many items as possible before the impending stoppage.

Other ports, such as New Orleans, Louisiana, and Savannah, Georgia, had offered extended hours in recent days ahead of the deadline.

The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the Covid-19 pandemic.

USMX said Monday its latest offer would "increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation."

Media reports say the ILA is asking for a 77 percent wage increase over six years.

"A port strike would paralyze US trade and raise prices at a time when consumers and businesses are starting to feel relief from inflation," said Erin McLaughlin, senior economist at the Conference Board, a business research non-profit.

Read also

China cuts amount banks hold in reserve to boost lending

"There's no easy Plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternative options are limited."

Source: AFP