Nearly 50,000 members of the International Longshoremen’s Association (ILA) went on strike on Tuesday, marking the first large-scale stoppage in nearly 50 years. The strike affects cargo ports from Maine to Texas, halting most activity at some of the busiest U.S. ports. The strike began at midnight, following the expiration of the workers' labor contract. The strike does not affect cruise ships.
The strike is expected to disrupt the flow of a wide variety of goods, including food, beverages, furniture, clothing, household goods, and auto parts. It could also impact U.S. exports flowing through these ports, potentially hurting sales for American companies. However, New York Governor Kathy Hochul expressed confidence that consumers won't notice a shortage in most essential goods like food and medical supplies until weeks into the potential strike.
The ILA and the United States Maritime Alliance (USMX), which represents the major shipping lines, terminal operators, and port authorities, have been in negotiations over a new contract. The USMX said on Monday that it had increased its offer to wage increases of more than 50% over the proposed six-year contract, but the ILA reportedly rejected the offer. The ILA is reportedly asking for annual pay hikes that would result in raises totaling 77% through the life of the contract, with top pay climbing from $39 an hour to $69.
The strike is the first at these ports since 1977. While the union says there are about 50,000 members covered by the contract, the USMX puts the number of port jobs closer to 25,000. The strike could cost the economy billions of dollars a day, depending on its length.
According to Reuters, this is the first large-scale stoppage by the ILA in nearly 50 years. The New York Times reported that there were signs of movement in negotiations hours before the contract expired. CNN reported that the strike could result in shortages of consumer and industrial goods, which could then lead to price hikes.