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Article by: Rick Walker, Vice President, TradeInsights, LCB/CCS

The International Longshoremen’s Association (ILA) representing workers on the US East and Gulf coasts said that its members would go on strike on October 1, 2024 if a new contract is not in place. September 30 will mark the expiration of the current six-year dockworkers labor agreement.

On September 4-5, the ILA conducted wage scale meetings that concluded with unanimous support for a coastwide strike. ILA executive vice president Dennis A. Daggett laid out the union’s strike plan: “We must be prepared if we have to hit the streets at 12:01 AM on Tuesday, October 1, 2024.” Nearly 300 International Longshoremen’s Association (ILA) Wage Scale Delegates ended the two-day Wage Scale Meetings in Teaneck, New Jersey, on Sept. 5 by unanimously supporting International President Harold J. Daggett’s call for a blanket East and Gulf Coast strike on Oct. 1, if a new agreement with the United States Maritime Alliance (USMX) cannot be reached by that time. USMX said it is prepared to resume contract negotiations with the ILA to avoid a strike. The union has not carried out a coastwise strike in nearly 50 years.

With time running out, the two sides appear to be far apart. USMX has offered a 40% pay increase.

According to the Wall Street Journal, the union is holding out for a 77% pay increase, more than double the 32% increase recently won by West Coast dock workers.

West Coast ports might be able to handle some of the cargo that normally goes through the East and Gulf Coast ports but getting imported products from California to major distribution centers on the East Coast would add to transportation costs.

In addition to more expensive imports, U.S. exporters could be limited in their overseas shipments, possibly leading to layoffs as exports pile up.

President Biden could invoke the federal Taft-Hartley Act to force the union back to work, but it would be a move fraught with political risk coming just before the Nov. 5 election.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.