Tens of thousands of longshore workers could walk off the job from Maine to Texas next week if unions and management can't resolve long-running contract issues.
The damaging strike, which begins just days before President-elect Donald Trump's inauguration, could be the president-elect's first economic test. Big business is furious at the financial price threatened by the president of the International Longshoremen's Association (ILA). be“Strong relationship”With Trump.
ILA workers went on strike in October after the union and the United States Maritime Alliance (USMX), a group of port operators and shipping companies, failed to reach an agreement before the contract expired. The two countries, with support from Biden administration officials, have struck a deal to end the three-day strike that includes a 62% wage increase over the next six years.
If the parties cannot agree on automation by the Jan. 15 deadline, raises and other compensation may be off the table. The ability to automate port functions will affect the capital investment desired by shippers and port operators, which will be a factor in determining the overall value of USMX labor contracts, one labor source said. told The Hill.
The official said he would “not be shocked at all” if the union chose to go on strike within a week.
“The outcome of these talks could have a major impact on global supply chains, as there are unresolved issues around automation and job security. Previous agreements delayed disruption, but they do not allow for lasting solutions. The pressure is increasing,” said John Donigian, senior director of supply chain strategy at Moody's.
ILA and USMX will reportedly return to the negotiating table on Tuesday after negotiations broke down in November when management asked for more contractual leeway on the introduction of new technology. The union strongly opposes port automation, saying it would put union jobs at risk.
USMX denies that the proposal is aimed at cutting jobs, saying the deal banning automation would “set the industry back by restricting the future use of technology that has existed in some ports for nearly 20 years.” It will happen,” he said.
“We need to improve worker safety, increase efficiencies in ways that protect and grow jobs, keep supply chains strong, and increase production capacity that economically benefits both American businesses and workers. Continued modernization is essential,” USMX said in a statement.statement.
Achieving more fully automated ports, like those in China, is a major concern for investors in the logistics industry, both labor and management officials told The Hill.
ILA declined to comment during negotiations. USMX did not respond to The Hill's request for comment.
Trump, who will be sworn in as president on January 20, days after the strike deadline, appeared last month to side with longshore workers on the automation issue.
“I study automation, and I know just about everything there is to know about it. The money saved is the pain, injury, and harm it causes to American workers, in this case longshore workers. We're nowhere near that,” President Trump said.poston his social media platform Truth Social in December.
“Foreign companies have made wealth in the United States by providing access to American markets. They should not be left with a dime, knowing how many families have been hurt,” he said. added. “They are making record profits, but I would rather these foreign companies spend their profits on the big guys at our docks than on expensive machinery that constantly needs to be replaced. At the end of the day, there's no benefit to them, and I hope they understand how important this is to me.”
Donigian said President Trump's support for longshoremen “reflects a broader debate about balancing labor issues with the need to modernize to maintain efficiency and global competitiveness.” said.
Although President Trump was incensed during the campaign by joking about firing striking workers in an August interview with Tesla billionaire Elon Musk, the president-elect has positioned himself as a friend of unions and is proud of his team. Stars General Chairman Sean O'Brien was invited to become the union's first president. He is scheduled to speak at the Republican National Convention this summer.
ILA International President Harold Daggett said he believes:“Strong relationship”With Trump. He met with Trump at Mar-a-Lago in December to update him on the status of negotiations, which preceded the president-elect's social media posts.
Mr Daggett made headlines ahead of the first work stoppage when he warned that the union could:“Inconvenient”The longer a potential strike lasts, the more likely it is. Consumers will likely feel little impact during the first week of the strike, but experts have previously predicted that consumers will see supplies of fresh produce, auto parts, coffee, champagne, cheese and more in the next one to two weeks. He told The Hill that he's likely to feel the pinch. It will start to disappear within a month.
“Timing is important,” Donigian said. “Retailers are replenishing post-holiday inventories, manufacturers are securing parts, and the upcoming Lunar New Year will add pressure to strained delivery networks.Currently, disruptions are occurring in key sectors such as retail, automotive, electronics and agriculture. This could lead to increased costs, production delays, and inventory levels.”
Strike could halt billions of dollars in trade and cause just as much damage to the U.S. economy$5 billion per dayand rising inflationary pressures. Trade groups representing a wide range of industries are urging both sides to reach an agreement to avoid confusion and uncertainty.
“A paralysis of these critical global commerce gateways could result in delayed shipments, increased costs, and potential supply shortages, impacting multiple sectors of the economy. The longer it lasts, the more consumers will feel the ripple effects,” the Retail Industry Leaders Association (RILA) said in a statement on Monday.
During the October strike, business leaders, including the U.S. Chamber of Commerce, urged Biden that the president ask the courts for an 80-day “cooling off” period for strikes that endanger public health and safety. He urged the invocation of the Taft-Hartley Act, which recognizes ”
Biden declined to invoke Taft-Hartley, which would be a political minefield in the run-up to the 2024 election. The last president to invoke Taft-Hartley was George W. Bush in 2002, when he used Taft-Hartley to end employer lockouts during a West Coast port strike.
Hill contacted a spokesperson for the Trump transition to ask whether the president-elect would consider invoking the Taft-Hartley Act if longshore workers attacked.
