Updated on Oct. 1, 2024, at 8:32 a.m. to amend wording for the now active strike.
With tens of thousands of union dockworkers on strike at East and Gulf Coast ports starting Tuesday, here is an overview of the labor dispute and its potential impact on the U.S. economy.
Who is striking?
The International Longshoremen’s Association (ILA) is the union behind the strikes.
Founded in 1877 as the Association of Lumber Handlers, the ILA states on its website that the union today represents upwards of 85,000 longshoremen on the U.S. East and Gulf coasts, the Great Lakes, major U.S. rivers, Puerto Rico, eastern Canada, and the Bahamas. It is the largest union of maritime workers in North America.
Why a strike?
The ILA strike comes as negotiations fell through between the union and the United States Maritime Alliance (USMX) for a new master contract agreement. The USMX represents employers of the East and Gulf Coast longshore industry, and the master contract guides subsequent local agreements at 14 East and Gulf Coast ports.
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Steve Hathaway
North coast docks are open for business. I understand the union wanting wage hikes little ridiculous. When I found out, they only make about $28 an hour on an average I was like wow. The one thing, I do not agree with them on, that is modernizing the docks. Time to move the Navy out of the federal ports, and start using them to offload ships.
Mark Zetter
In talking with equipment manufacturers some are already reviewing sales and operations planning (S&OP) processes and strategies…tying raw material pipelines and related production work orders to FGI inventory and supply chain replenishment – unsure how a long strike may impact availability of inbound and outbound materials pipelining and finished goods inventory – and wanting to prepare to prevent bubbles in their supply chains.