The current contract is set to expire on September 30.
This week, unionized dockworkers unanimously backed their leaders’ calls for a strike at U.S. East and Gulf Coast ports if a new agreement with employers is not finalized by October 1. Nearly 300 delegates of the International Longshoremen’s Association (ILA) wrapped up two days of meetings in New Jersey, endorsing International President Harold J. Daggett’s proposal for a coastwide strike at ports stretching from Maine to Texas on October 1, should a new Master Contract with United States Maritime Alliance employers not be achieved by that date.
During the second day of discussions in Teaneck, New Jersey, details regarding the proposed job action were shared with representatives from 13 port areas involved in the ILA and USMX agreements, as stated in an ILA release.
A significant work stoppage could have severe repercussions on the U.S. economy. The current contract governs six of the ten busiest container ports in the U.S., which manage over 13 million twenty-foot equivalent units annually, equating to about 56% of all incoming containers, according to the Retail Industry Leaders Association. This situation is particularly critical as importers are receiving goods in preparation for the important holiday selling season.
The political ramifications remain unclear. While the Biden administration played a proactive role in labor negotiations to prevent a railroad strike in 2022, the ILA has thus far declined any government intervention in their bargaining process. President Joe Biden and Vice President Kamala Harris have been actively engaging with union voters ahead of the upcoming election. However, any governmental response will need to weigh national interests against labor support, as calls are likely to arise to address potential economic fallout from a strike.
One possible course of action is the invocation of the Taft-Hartley Act, which grants the administration authority to mandate that the longshore union return to work while negotiations continue. This act was last enforced by President George W. Bush to end a strike by West Coast dockworkers prior to the 2002 election.
