Dockworkers at major ports on the East and South coast of the United States began a historic strike on Tuesday, the first in nearly 50 years. This social movement, triggered by the failure of last-minute negotiations between their union, the International Longshoremen’s Association (ILA), and the United States Maritime Alliance (USMX), marks a turning point five weeks before the election presidential.
Harold Daggett, the leader of the union which brings together 85,000 members, clearly indicated the dockers’ determination to win their case. “We are prepared to fight as long as necessary, to stay on strike as long as it takes, to obtain the wages and protections that our members deserve,” he declared.
A conflict that is gaining momentum
The conflict intensified after the expiration, Monday evening at 11:59 p.m., of a six-year social agreement which governed working conditions in 36 ports, from Maine to Florida to Texas. Despite discussions initiated since May, the negotiations are at an impasse. Dockers, who work in container and vehicle import/export terminals, had already warned that all their members would mobilize from Tuesday.
U.S. President Joe Biden intervened, urging the USMX to return to the negotiating table and provide a “fair” deal to workers. He stressed that, during the pandemic, shipping companies had reaped large profits, and that managers as well as shareholders had benefited. “It is only fair that workers, who took risks during the pandemic to keep ports open, see their wages increase significantly,” he said.
The White House insists on the need for an agreement
Despite tensions between the union and the Maritime Alliance, Joe Biden has ruled out for the moment the use of the Taft-Hartley Act, legislation that would allow an 80-day moratorium on strikes to be imposed, a measure that had been employed in similar disputes before 1977. The White House reiterated its call on the USMX, emphasizing the need to reach a “fair” agreement that reflects the dockworkers’ “important contribution” to the nation’s economic recovery.
The Maritime Alliance, for its part, defended its offer, recalling that it included a salary increase of “nearly 50%”, while the union demanded an initial increase of 77%. “We have demonstrated our commitment to doing our part to end this avoidable strike,” USMX said, pointing to the union’s refusal to continue discussions.
Serious economic consequences
The economic consequences of this social movement are potentially very serious. The Oxford Economics Institute estimates that each week of strike action could cost US GDP between $4.5 billion and $7.5 billion, while the Anderson Economic Group (AEG) estimated that the first week of strike action would result in a loss of 2.1 billion dollars, including 1.5 billion in lost goods, including perishable goods. For the moment, certain sectors such as hydrocarbon transport, agricultural products and cruises should be relatively spared.
However, the consequences on the supply chain, particularly import/export companies, are significant. Some economic players had anticipated the strike by shipping their goods in advance, while others chose to divert their traffic to ports on the West Coast, a more costly option in terms of time and money.
The West Coast spared by the movement
Indeed, the ports on the West Coast are covered by a separate social agreement concluded in 2023, which prohibits any strike. However, disruptions could occur as a sign of solidarity with dockworkers in the East and South. In addition, these ports have limited capacity, which could make it difficult to absorb additional traffic.
Finally, Canadian ports, which could have represented an alternative, are themselves affected by social movements, like in Vancouver last week or in Montreal, blocked since Monday.