The International Longshoremen's Association (ILA) will go on strike for the first time since 1977,which will affect ports handling about half of the nation's maritime shipping and could jeopardize jobs and exacerbate inflation.
The ILA announced last Sunday that a strike at ports along the East Coast and the Gulf of Mexico will begin on Tuesday,potentially leading to cargo delays and supply chain disruptions.
The union said in a statement: "The United States Maritime Alliance (USMX)...refuses to address the issue of wage suppression for half a century." The USMX,representing employers in the East Coast and Gulf Coast terminal industry,did not immediately comment.
The strike at ports from Maine to Texas will be the ILA's first since 1977,affecting ports that handle about half of the nation's maritime shipping.
A source said that there were no negotiations between the two sides last Sunday,and there are currently no plans for negotiations before the deadline at midnight on Monday.The ILA previously stated that the strike would not affect the transportation of military cargo or cruise traffic.The White House did not immediately comment on the union's statement.
Earlier last Sunday,Biden said he did not intend to intervene to prevent a strike if dockworkers failed to secure a new contract before the October 1 deadline."This is collective bargaining.I don't believe in the Taft-Hartley Act," he told reporters.
Under the federal Taft-Hartley Act,the president can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period.
Reuters reported on September 17,citing White House officials,that Biden does not intend to invoke the Taft-Hartley Act.
With only a few weeks left before the U.S.presidential election,the strike could lead to disruptions in the transportation of various goods,from food to cars,at major ports.This dispute could jeopardize jobs and exacerbate inflation.
The Business Roundtable,representing major U.S.business leaders,said it is "deeply concerned about the potential strike at ports along the East Coast and the Gulf Coast."The organization warned that the shutdown could cost the U.S.economy billions of dollars each day,"hurting American businesses,workers,and consumers across the country.We urge both sides to reach an agreement before the deadline on Monday night."
For months,the union has threatened to shut down the 36 ports it covers if employers such as container ship operator Maersk (MAERSKb.CO) do not significantly increase wages and halt the automation of port projects.
This dispute has caused concern for businesses that rely on maritime exports of goods or ensuring key imports.
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