The U.S. is facing its first full-scale port strike in the Southeast since 1977, as dockworkers launch industrial action that experts warn could severely disrupt global supply chains. According to industry estimates, the economic fallout could reach as much as $5 billion.
The International Longshoremen’s Association (ILA), representing 45,000 dockworkers, announced that the strike would begin Monday following a breakdown in contract negotiations. ILA’s leader, Harold Daggett, has accused foreign-owned ocean carriers of profiting from U.S. ports while failing to offer fair compensation to the workers responsible for driving that wealth. He singled out the U.S. Maritime Alliance (USMX) in his statement.
“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 declared.
The strike has effectively shut down operations at 36 key ports along the East Coast and Gulf of Mexico, affecting 25,000 workers. The dispute stems from failed contract renewal negotiations, which expired on September 30. The ILA is pushing for significant wage increases and a ban on automated cranes and trucks during cargo handling.
While USMX had proposed a nearly 50% wage hike, it did not meet the union’s demands, prompting the strike. With over two-thirds of U.S. container exports and more than half of its imports passing through the affected ports, the economic repercussions could be considerable.
Oxford Economics forecasts that the strike could result in a $4.5 billion to $7.5 billion hit to U.S. economic activity, and clearing the backlog could take up to a month once operations resume. Despite these concerns, the U.S. government has opted not to intervene, maintaining that the dispute should be settled through collective bargaining.
A White House official confirmed that the Department of Labor is monitoring the situation but added that there are no current plans to engage in negotiations.
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