The leadership and rank-and-file membership of the International Longshoremen’s Association were fired up in the first hours of their first coastwide strike in nearly 50 years. An estimated 25,000 or more members hit the picket lines from Maine to Texas as carriers and shippers scrambled with their contingency plans and President Joe Biden put out a statement in support of the union calling for a quick resolution.

The ILA in its official statement said it rejected U.S. Maritime Alliance’s final proposal made on Monday, which USMX said called for a nearly 50 percent wage increase. “The USMX last offer fell far short of what ILA rank-and-file members are demanding in wages and protections against automation,” the union declared in its statement.

Union President Harold Daggett put out a video threatening to “cripple you,” lecturing on the nature of port operations. He said it is time for the carriers and their terminal companies to share their massive profits made during the pandemic with the dockworkers. He is demanding the companies “compensate the American LIA longshore workers who perform the labor that brings them their wealth.”

“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,” said Daggett.

Government officials sought to downplay the short-term impact saying that businesses were well stocked and prepared for the strike. They said there should be little immediate impact on consumers while others such as The Conference Board issued more dire warnings that the strike would “paralyze U.S. trade.”

Port officials varied but the executive director of the Port Authority of New York and New Jersey said nearly 100,000 containers are waiting to be offloaded in the NY/NJ port area. He said 35 ships had been scheduled to arrive in the coming week.

Broad support is being voiced for the strikers. The Teamsters union which represents drivers among others highlighted its support while reminding members “Teamsters do not cross picket lines.”

President Joe Biden issued a statement reiterating his belief in collective bargaining. He said he had urged USMX to “come to the table,” and to present a fair offer to ensure dockworkers are paid appropriately. He also said they would be monitoring the situation including looking for any price gouging activity that benefits foreign ocean carriers.

“It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well,” said Biden highlighting the record profits of the foreign-owned carriers. “Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits.”

Harold Daggett doing interviews at the start of the strike (ILA)

Daggett speaking on CNN however praised Acting Labor Secretary Julie Su saying she had “knocked down doors” and was trying to settle the contract dispute. He said she was trying to get fair negotiations.

While the administration is vowing not to act, expectations are that the pressures will mount if the strike drags on. Daggett said they would choke off vehicle deliveries, raw materials for construction, and other supply chains resulting in layoffs in other industries. He asserts people do not know what a strike is today.

“We expect the strike itself to last for five to seven days until a government intervention... but the ripple effect is likely to be felt across the whole networks into Europe, into Asia for at least into January, February," said Peter Sand, chief analyst at Xeneta.

Maersk issued an advisory last night telling customers that they should hold on to empty containers until the strike was over. They said Maersk did not have arrangements for empty storage space and advised customers to speak with the representatives about shipping alternates. More carriers have also announced additional fees. CMA CGM immediately invoked Force Majeure imposing fees on refer boxes and truck chassis but suspending D&D charges and extending free time.

USMX representing the employers responded Tuesday afternoon saying its last offer of a nearly 50 percent wage increase "demonstrated a commitment to doing our part to end the completely avoidable ILA strike." It said it was "looking forward to hearing from the union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”

Source: The Maririme Executive