Workers Across Major East Coast Ports Launch Strike That Could Have Major Economic Impact

01 Oct 2024 by Siladitya Ray · Forbes

Topline

Dockworkers across all major ports along the East Coast began striking on Tuesday, in a move that could significantly impact the U.S. economy just weeks before the presidential elections.

The ILA strike will affect all major ports across the East and Gulf coasts.Getty Images

Key Facts

The International Longshoremen’s Association’s (ILA) members began their walkout at midnight after failing to reach a deal with ocean carriers and port operators represented by the US Maritime Alliance (USMX).

The ILA is demanding a 77% wage increase over six years along with a ban on automation which it argues is hurting workers.

According to the Associated Press, some progress was reported between the workers and port operators, hours before the strike began.

In a statement, the USMX said it had improved its offer to include 50% raises over six years while retaining the currently agreed to limits on automation.

The ILA, however, has refused to meet with the port operators group until their wage demands are met, the Wall Street Journal reported.

Big Number

45,000. That is the number of port workers the ILA represents across 14 major east coast ports impacted by the shutdown. The affected ports are Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.

Will President Joe Biden Intervene?

The White House said Monday that Chief of Staff Jeff Zients and National Economic Council Director Lael Brainard with the port operators group on Monday and urged them to resolve the issue quickly and fairly. President Joe Biden has the authority to intervene in the strike using the Taft-Hartley Act, which could defer the strike by 80 days. Biden has faced pressure from Congressional Republicans and business leaders to intervene and stop the strike. Biden told reporters on Sunday he will not invoke the Taft-Hartley Act adding: “Because it’s collective bargaining, and I don’t believe in Taft-Hartley.”

How Will It Impact The U.s. Economy?

Experts have offered slightly different figures on how the strike will impact the U.S. economy. Grace Zimmer, an economist at the financial analyst firm Oxford Economics, told the BBC the strike could cost the economy up to $7.5 billion a week. J.P. Morgan estimates the number could be even higher, costing the economy between $3.8 billion to $4.5 billion per day. The strike is unlikely to immediately impact consumers as retailers have shipped many items for the holiday shopping season early and diverted other cargo to West Coast ports. However, the longer the strike persists the more visible its impact will be on prices.