Dockworkers at ports from Maine to Texas began walking picket lines early Tuesday in a strike over wages and automation that could reignite inflation and cause shortages of goods if it goes on more than a few weeks.
The union strike, including at PortMiami and Port Everglades, began after negotiations on a new six-year contract stalled.
Miami-Dade Mayor Daniella Levine Cava sent a memo to commissioners on Monday outlining the preparations being made as workers hit the picket lines.
“The County supports the rights of our workers to engage in collective bargaining, and the Port is working with its industry partners, including law enforcement, to ensure safety and security of all port users and operations," the memo read, in part.
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The work stoppage impacts at least 14 ports from Maine to Texas, including South Florida’s Port Everglades and PortMiami.
The International Longshoremen’s Association said negotiations have stalled because the United States Maritime Alliance refuses to raise wages and protect union workers from automation taking their jobs.
But earlier this month, the Alliance filed an unfair labor practice charge with the National Labor Relations Board, accusing the union of refusing to bargain.
The economic ripple effects could be severe. All containers carrying food, electronics, building materials and more will stall at ports until the strike is over.
“Let’s get a contract and let’s move on with this world because in today’s world, I’ll cripple you,” said ILA National President Harold Daggett. “These companies are making billions of dollars; they should take us along. We brought them to where they are. Now they want to get rid of us. That’s not fair.”
Craig Austin, an Associate Professor of Logistics and Supply Management at FIU, said it could cost the industry more than $4 billion per day.
“That’s a lot of money… regardless of what you’re going to pay these workers. So, the question becomes when do you settle?” Austin said.
Price hikes and shortages are possible within weeks if the strike continues. Austin says retailers tried to get ahead of the strike by ordering more supplies early. But with 60% – 80% of all consumer goods arriving in the U.S. by ship, the impact of a work stoppage of this magnitude is bound to be felt.
The last time ILA had a coastwide strike was in 1977. The union says it lasted for three months.
“For a working family, they’re not going to be able to find some things and they’re going to pay more for the things they’re getting,” Austin said. “What are the alternatives? There aren’t any.”
Negotiations stall
The U.S. Maritime Alliance, which represents the ports, said Monday evening that both sides had moved off of their previous wage offers. But no deal was reached.
The union’s opening offer in the talks was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.
But Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The union wants a complete ban on automation. It wasn’t clear just how far apart both sides are.
“We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues in an effort to reach an agreement,” the alliance statement said.
In a statement early Tuesday, the union said it rejected the alliance’s latest proposal because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.
“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” Daggett said in the statement. “They must now meet our demands for this strike to end.”
The alliance said its offer tripled employer contributions to retirement plans and strengthened health care options.
