💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

US East Coast port strike set to start Tuesday, says union

Published 09/29/2024, 04:12 PM
Updated 09/29/2024, 05:04 PM
© Reuters. FILE PHOTO: A tugboat passes shipping containers being unloaded and stacked on a pier at Port Newark, New Jersey, U.S., November 19, 2021. REUTERS/Mike Segar/File Photo

By David Shepardson, Steve Holland

WASHINGTON (Reuters) -A port strike on the U.S. East Coast and Gulf of Mexico will go ahead starting on Tuesday, the International Longshoremen’s Association union said on Sunday, signaling action that could cause delays and snarl supply chains.

"United States Maritime Alliance ... refuses to address a half-century of wage subjugation," the union said in a statement. The United States Maritime Alliance, known as USMX, represents employers of the East and Gulf Coast longshore industry.

USMX did not immediately comment.

If union members walk off the job at ports stretching from Maine to Texas, it would be the first coast-wide ILA strike since 1977, affecting ports that handle about half the nation's ocean shipping.

A source said no negotiations were taking place Sunday and none are currently planned before the midnight Monday deadline. The union said previously the strike would not impact military cargo shipments or cruise ship traffic.

The White House did not immediately comment on the union's statement.

Earlier on Sunday, President Joe Biden said he did not intend to intervene to prevent a walkout if dock workers failed to secure a new contract by an Oct. 1 deadline.

"It's collective bargaining. I don't believe in Taft-Hartley," he told reporters. Presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act.

Reuters first reported on Sept. 17 that Biden did not plan to invoke the Taft-Hartley provision, citing a White House official.

A strike could stop the flow of everything from food to automobiles at major ports – in a dispute that could jeopardize jobs and stoke inflation weeks ahead of the U.S. presidential election.  

Business Roundtable, which represents major U.S. business leaders, said it was "deeply concerned about the potential strike at the East Coast and Gulf Coast ports."

The group warned a labor stoppage could cost the U.S. economy billions of dollars daily "hurting American businesses, workers and consumers across the country. We urge both sides to come to an agreement before Monday night’s deadline."

For months, the union has threatened to shut down the 36 ports it covers if employers like container ship operator Maersk and its APM Terminals North America do not deliver significant wage increases and stop terminal automation projects.

The dispute is worrying businesses that rely on ocean shipping to export their wares, or secure crucial imports.

© Reuters. Port Newark, New Jersey, November 19, 2021. REUTERS/Mike Segar

On Friday, Biden administration officials met with the United States Maritime Alliance (USMX) employer group to directly convey "that they need to be at the table and negotiating in good faith fairly and quickly" – a message it delivered earlier to the ILA.

The USMX employer group has accused the ILA of refusing to negotiate.  

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.