A strike at U.S. East Coast and Gulf of Mexico ports will commence on Tuesday, the International Longshoremen’s Association (ILA) announced Sunday, setting the stage for potential delays and disruptions to supply chains.
The union accused the United States Maritime Alliance (USMX), which represents employers in the East and Gulf Coast longshore industry, of ignoring decades of wage inequities. “United States Maritime Alliance… refuses to address a half-century of wage subjugation,” the ILA said in a statement.
White House spokesperson Robyn Patterson said senior officials had been in contact with USMX over the weekend, urging both sides to quickly reach a fair agreement that reflects the success of the companies. The White House delivered the same message to the ILA, Patterson added.
Earlier on Sunday, Biden stated he did not plan to intervene to prevent a strike if workers fail to secure a new contract by the October 1 deadline. “It's collective bargaining. I don't believe in Taft-Hartley,” Biden told reporters, referring to the federal act that allows presidents to intervene in labor disputes by imposing an 80-day cooling-off period.
A strike could halt the flow of goods from food to automobiles at major ports, threatening jobs and fueling inflation just weeks before the U.S. presidential election.
Business Roundtable, representing U.S. business leaders, voiced its concerns, warning that a port strike could cost the U.S. economy billions of dollars daily, impacting businesses, workers, and consumers across the country. The group urged both sides to reach an agreement before the Monday night deadline.
For months, the ILA has threatened to shut down the 36 ports it covers if employers, including companies like Maersk and its APM Terminals North America, fail to provide significant wage increases and halt terminal automation projects.
Businesses reliant on ocean shipping for exports and critical imports are now on edge as the dispute escalates. USMX has accused the ILA of refusing to negotiate.
