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Joe Biden “urged” Tuesday the USMX “to come to the table and present a fair offer to workers”, to extinguish a strike with potentially very significant economic consequences. “Shipping carriers have made record profits since the pandemic,” noted the Democratic president, stressing that managers and shareholders had benefited.
According to him, “it is only fair that workers, who took risks during the pandemic to keep ports open, also see their salaries increase significantly.”
45,000 strikers
He ruled out the activation of the Taft-Hartley Act – already used for ILA strikes before 1977 – allowing an 80-day moratorium to be imposed. “It is time for the USMX to negotiate a fair agreement with dockworkers that reflects their important contribution to our economic recovery,” commented the White House spokesperson.
The USMX defended its offer on Tuesday, recalling that it included a salary increase of “nearly 50%”. According to American media, the union initially demanded 77%. “We have demonstrated our commitment to doing our part to end the ILA strike which was completely avoidable,” the Alliance said.
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The social contract concerns 25,000 members, working in the container and vehicle import/export terminals of fourteen major ports (including Boston, New York, Philadelphia, Baltimore, Savannah, Miami, Tampa, Houston). The union warned on Sunday that all its members would hold strike pickets from 12:01 a.m. Tuesday, “joined in solidarity by dockers and maritime workers around the world.”
It specified that its 45,000 members working in the 36 ports of the USMX were on strike, the first major strike on the American coast since 1977. The transport of hydrocarbons and agricultural products, or even cruises should nevertheless not be be only very weakly, if at all, affected.
No stops during covid
“We worked during covid, we never stopped. We allowed the world to continue to function,” recalled Jonita Carter, a dockworker for 23 years. She was one of around 200 demonstrators gathered in front of the Maher Terminals site, one of the largest in Port Elizabeth, the major port of New York-New Jersey.
A little further away, there were about twice as many gathered in front of the facilities of APM Terminals, another operator. “We are not asking for much, the small part to which we are entitled,” said Jonita Carter. “With automation, we will lose our jobs.” The ILA is calling for a significant increase in salaries and a freezing of all port automation. The Alliance criticized the union for refusing any discussion for weeks, thereby preventing an agreement on the new six-year agreement.
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Hard blow to GDP
Importers and exporters had taken the lead by shipping their products in advance. Others have opted for unloading on the West Coast, which is more costly and time consuming from Europe. But west coast ports, covered by a separate social agreement reached in 2023 that prohibits them from striking, could disrupt activities in solidarity and they have little spare capacity. Furthermore, Canadian ports could not absorb additional traffic from the United States, especially since they are also experiencing social movements, such as Vancouver last week and Montreal blocked since Monday.
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Oxford Economics estimates that each week of strike action would reduce US GDP by $4.5 billion to $7.5 billion. According to the Anderson Economic Group (AEG), the first week of the walkout is expected to cost $2.1 billion, including $1.5 billion in lost goods (such as perishable goods).
