Thousands of dock workers at major ports along the East and Gulf Coasts have gone on strike, causing major shake-ups in the manufacturing supply chain.
The International Longshoremen’s Association (ILA) initiated a widespread strike on Tuesday over a dispute centered on wage increases and protections against automation, with the United States Maritime Alliance (USMX) and ILA failing to reach an agreement despite last-minute negotiations.
“We are now demanding $5 an hour increase in wages for each of the six years of a new ILA-USMX Master Contract,” said ILA President Harold Daggett, for a total of $30 total — a pay increase of 77 percent over six years. KHOU reported that USMX had offered a pay increase of 50 percent over six years.
“Plus, we want absolute airtight language that there will be no automation or semi-automation, and we are demanding all Container Royalty monies go to the ILA.”
As the Social Security Administration explains, “Container royalty payments are special payments to compensate longshoremen for decreased employment opportunities resulting from the use of containerized shipping.”
Daggett issued a warning about the strike just a few weeks prior.
“I will cripple you and you have no idea what that means. Nobody does,” Daggett said in a video.
“These people today don’t know what a strike is,” Dagget added, emphasizing the impact a strike could have on the U.S. economy.
“Everything in the United States comes on a ship.”
Ports from Texas to Maine have been impacted by the strike that began Tuesday, with Bernie O’Donnell, Vice President for ILA New England, telling reporters, “We plan on being here 24/7 until we get a good contract. We are looking for a fair contract and we are fighting automation.”
The Port of Houston, the largest Gulf Coast container port, is one of those impacted by the strike. The Houston Ship Channel complex is the top-ranked U.S. port in foreign waterborne tonnage, and the activity at the Port of Houston helps generate more than $439 billion in statewide economic value and $906 billion in nationwide economic value.
The City of Houston and Houston Mayor John Whitmire said on social media that they are “standing in solidarity” with the strikers at the Port of Houston.
The 14 major ports being affected by the strike handle approximately 43 to 49 percent of all U.S. imports, moving billions of dollars in trade monthly.
The ILA released a statement late Monday night about the impending strike.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” the ILA said late Monday night.
“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.”
In a last-ditch effort to avert a strike, port employers represented by the USMX exchanged wage-related offers with the union in the final 24 hours of negotiations before the contract deadline.
The contract between the ports and approximately 45,000 members of the International Longshoremen’s Association expired at midnight, and despite reported progress in Monday's negotiations, the workers proceeded with a strike.
This strike, impacting 36 ports, marks the union's first walkout since 1977.
Teamsters General President Sean M. O’Brien issued a statement of support for the ILA strike.
“The U.S. government should stay the f**k out of this fight and allow union workers to withhold their labor for the wages and benefits they have earned. Any workers—on the road, in the ports, in the air—should be able to fight for a better life free of government interference,” wrote O’Brien.
“Corporations for too long have been able to rely on political puppets to help them strip working people of their inherent leverage.”
Ports are categorized as a “critical infrastructure facility” under Texas law. The economic impact of the strike on the Texas and U.S. economy has not yet been felt, but questions concerning “criminal liability” due to the “impairing or interrupting operation of critical infrastructure facility” could come to bear if the strike continues to disrupt the operations of the ports for an extended period, potentially leading to legal action against those responsible for the interruption.
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