Countdown to Coast-Wide Port Strikes
With the looming threat of a coast-wide strike by the International Longshoremen’s Association (ILA), the resilience and dedication of port workers are more crucial than ever. This Labor Day, it's important to recognize the vital role they play in maintaining our supply chains and the economy at large.
Harold J. Daggett, ILA President and the union’s Chief Negotiator, said that the employers represented by United States Maritime Alliance (USMX) are running out of time to negotiate a new Master Contract agreement and avoid a coast-wide strike on October 1, 2024.
The 85,000-member ILA is aiming for the West Coast port workers’ 2022 pay increase of 32 percent, plus bonuses and hazard pay. But negotiations with the U.S. Maritime Alliance were off in June due to complaints about trucks using automated gates at the Port of Mobile, AL. Read more on that here.
Domestic Political Implications
The ILA timing may be advantageous. The Biden-Harris administration supports organized labor, and Daggett may think that the administration will step in to stop the chaos before the election.
Port strikes happen frequently because port workers fall under the jurisdiction of the National Labor Relations Board (NLRB) and are governed by the National Labor Relations Act (NLRA). Enacted in 1935, the NLRA grants most private-sector employees, including port workers, the right to unionize. However, the current NLRA framework does not guarantee continued operations during port worker strikes, and the NLRB's authority does not extend to disputes over expiring contracts or contract renegotiations.
If ports were instead regulated under the Railway Labor Act, which was established in 1926 to prevent labor disputes between railroad unions and management from disrupting commerce, the Biden-Harris administration could intervene by forming a Presidential Emergency Board and mandating mediation.
Other Supply Chain Threats
While the imminent ILA strike is an obvious domestic disruption to supply chains, there are environmental and political threats as well.
This year, the National Oceanic and Atmospheric Administration (NOAA) predicts an unprecedented Atlantic hurricane season, posing significant risks to ports along the East and Gulf coasts. Weather-induced port disruptions, though often brief, can be severe and may impact several ports. We saw this during Hurricane Sandy in 2012, which led to port closures from Virginia to New York.
Geopolitical conflict is also a continuous threat to U.S. supply chains as it can cause delays, increase costs, and create uncertainties in trade routes. These disruptions could lead to port closures or reduced operations, directly threatening the jobs and livelihoods of port workers who rely on steady and predictable freight flows.
East and Gulf Coast Ports at Risk
You can view USMX-ILA Negotiations Updates here. Additionally, below is a list of ports subject to strike if an agreement is not reached by September 30, 2024.