Right-to-work states like Georgia and North Carolina employ both union and nonunion dockworkers.
Experts warn that a potential strike by the International Longshoremen’s Association (ILA) along the East and Gulf Coasts could significantly impact cargo container ports in right-to-work states, including Georgia and North Carolina. Negotiations between the ILA and the United States Maritime Alliance, representing port, terminal, and shipping management, have reached an impasse, with no new talks scheduled. The six-year ILA master contract covering approximately 25,000 dockworkers and other port employees from Maine to Houston is set to expire on September 30.
Ports utilizing a hybrid workforce—comprising both union and nonunion staff—such as those in Wilmington, North Carolina, and Savannah, Georgia, could experience operational disruptions if a strike occurs. In this model, nonunion workers handle lift equipment for loading and unloading container ships, while ILA members manage the remainder of the longshore work.
According to Mia Ginter, director of North American ocean at C.H. Robinson, the Port of Savannah is likely to halt operations during a strike. She noted, “Given previous strike patterns, even hybrid employers may find it unlikely that nonunion workers will continue to work.”
The Georgia Ports Authority employs around 1,500 nonunion workers, as indicated by state records. While workers at the authority are not unionized, many employees at the Port of Savannah’s stevedoring companies are ILA members, including clerks and cargo checkers. The North Carolina State Ports Authority, which oversees the Port of Wilmington, employs about 250 staff members, with 145 being unionized.
Nari Viswanathan, senior director of supply chain strategy at Coupa Software, emphasized the global implications of a strike at the Port of Savannah, saying, “These ports are crucial gateways for goods entering the southeastern U.S., playing a pivotal role in global supply chains. A disruption would result in significant delays, increased transportation costs, and potential shortages worldwide.”
Ginter further explained that a strike could close five out of the ten busiest ports in North America, affecting import and export freight globally. “No industry would be immune to the impact, although sectors such as automotive and pharmaceuticals might be particularly affected. Generally, a one-week disruption can lead to a month’s worth of congestion and delays,” she said.
Viswanathan added that an ILA strike might compel shippers to reroute cargo to West Coast ports. “Continual disruptions should prompt businesses to reconsider their reliance on these ports, potentially redirecting traffic to less impacted West Coast ports or other international hubs. This could shift trade patterns and logistics strategies, highlighting the need for flexibility and robust contingency plans,” he noted.
The ILA recently achieved a legal victory against port authorities in South Carolina and Georgia concerning nonunion jobs. In February, the U.S. Supreme Court declined to address a dispute between South Carolina and ILA dockworkers at the Port of Charleston’s Leatherman container terminal.
State officials in Georgia and South Carolina, along with the National Right to Work Foundation, submitted briefs asking the Supreme Court to hear the unionization case at the South Carolina Ports Authority. A ruling in favor of the ILA in July 2023 affirmed that unionized dockworkers possess the right to fill all positions at the Leatherman terminal.
The South Carolina Ports Authority employs 700 workers, with ILA members performing most longshore duties, while 270 nonunion state employees operate state-owned lift equipment. Mark Mix, president of the National Right to Work Foundation, expressed concern that the ILA could aim to eliminate all nonunion jobs at the Savannah and Wilmington ports.
Mix noted, “I suspect the ILA will strongly advocate for all ports under the United States Maritime Alliance master contract to be unionized. Nonunion employees in hybrid models will likely face pressure to adapt their operational practices.”
He further added that an ILA strike would complicate operations at hybrid ports like Savannah and Wilmington. “While the Port of Savannah may attempt to continue operating, doing so would be extremely challenging,” Mix stated. “Managing operations during a strike is quite difficult, and it’s unlikely anyone would attempt to work under those conditions.”
