Several tens of thousands of longshoremen on the East Coast and the Gulf of Mexico in the United States plan to walk out on Tuesday, barring a surprise twist, after weeks of deadlock in stalled negotiations on wages and automation.
On one side, the United States Maritime Alliance (USMX), which represents employers in 36 ports scattered along the coasts between Maine (northeast) and Texas (south), on the Gulf of Mexico, passing through Florida (southeast).
On the other, the longshoremen’s union, the International Longshoremen’s Association (ILA), which represents 85,000 in the United States (ports, rivers, lakes).
The social contract expiring Monday at 11:59 p.m. only concerns 25,000 members, working in the container and rolling vehicle loading terminals of 14 ports (Boston, New York, Philadelphia, Baltimore, Savannah, Miami, Tampa, Houston , etc.).
But the union warned on Sunday that all of its members would hold picket lines from 12:01 a.m. Tuesday, “joined in solidarity by dockers and maritime workers around the world.”
The transport of hydrocarbons and agricultural products, or even cruises, should be affected only very slightly, if at all.
Stuck situation
Both camps accuse each other of blocking the situation.
“ILA members deserve to be compensated for the important work they do to keep American commerce flowing and growing,” the union said in a statement Monday, denouncing the “billions of dollars of profits” reaped by ports and maritime carriers, including during the COVID-19 pandemic.
“Meanwhile, dedicated ILA members continue to be crippled by inflation due to unfair pay,” he continued.
The United States Maritime Alliance criticizes the union for refusing any discussion for weeks, thereby preventing any agreement on the new six-year agreement.
And Joe Biden – who claims to be the “most union-friendly president” – on Sunday dashed the last hopes of avoiding a strike, indicating that he had no intention of intervening. Five weeks before the presidential election.
However, he can activate the Taft-Hartley law — used repeatedly for ILA strikes before 1977 — allowing an 80-day moratorium to be imposed.
The Federal Mediation Service (FMCS) told AFP on Monday that it was in “regular contact” with the parties and was “ready to help” if both camps agree. The USMX agrees, the ILA does not.
Revamped calendars
Several port authorities, such as in New York and Boston, have warned their customers and users of the impending strike and the importance of recovering their goods by Monday at the latest, especially when it comes to fresh products. or dangerous.
Importers and exporters have taken the lead by shipping their products in advance. Others have opted for unloading on the West Coast, which is more costly and time consuming from Europe.
But West Coast ports, covered by a separate labor agreement reached in 2023 that prohibits them from striking, could disrupt operations in solidarity. And they have little available capacity.
The ports of Los Angeles and Long Beach, California, handle 40% of containers arriving in the United States, ahead of New York-New Jersey (20%), according to an expert.
Canadian ports could not absorb an overflow from the United States. Especially since they are also experiencing social movements, like that of Montreal, blocked since Monday, and that of Vancouver, which was blocked last week.
Oxford Economics estimates that each week of strike action would reduce US GDP by $4.5 billion to $7.5 billion.
According to the Anderson Economic Group (AEG), the first week of the walkout is expected to cost $2.1 billion, including $1.5 billion in lost goods (such as perishable goods).
“No immediate shortage of essential products”
“We do not anticipate any immediate shortage of essential products,” New York State Governor Kathy Hochul said at a press conference on Monday.
“Residents don’t need to rush to stores and stock up on supplies like they did during the pandemic,” she said.
Automakers are expected to take a hit from the walkout, with the ports of Baltimore and Georgia serving as an entry point for parts and an exit point for vehicles.
Ford said it was monitoring the situation closely. The German BMW group, which manufactures several SUV models exclusively in South Carolina, does not anticipate any problems this week.
Logistics group DHL, which has noted “strong demand” for its air freight services, has activated “several contingency plans” for its own shipments, including the use of alternative ports and means of transport.