East Coast dockworkers walk off the job amid labor dispute

About 45,000 workers at ports from Maine to Texas joined the picket lines in a strike over wages and automation of their jobs, according to a statement by the International Longshoremen’s Association, or ILA. The dockworkers walked off the job after failed contract negotiations between the ILA union and the United States Maritime Alliance, an industry group that represents port operators. It is the first strike by the union since 1977 and affects 36 ports, including three of the nation’s busiest ports in Houston; Savannah, Ga.; and New York and New Jersey. West Coast port workers are represented by a different union and are not part of the strike.

What sparked the dispute? The ILA and the maritime alliance had been negotiating a new six-year contract but struggled to agree on annual wage hikes. The union initially demanded a 77 percent pay raise over six years, according to reports by the Associated Press, while the alliance on Monday said it had increased its offer to 50 percent raises over the contract term. The ILA rejected the new offer, saying it fell short of what members had demanded. Union leaders also demanded a ban on the use of automated cranes, gates, and container-moving trucks. The maritime alliance last week asked a federal labor regulator to force the ILA to resume negotiations, according to a report by The New York Times.

The U.S. Chamber of Commerce on Monday sent a letter to President Joe Biden asking him to invoke the Taft-Hartley Act to prevent a strike. Biden on Monday said he would not intervene in the dispute.

How could this affect consumers? The strike could cost the economy $3.8 billion to $4.5 billion per day, according to J.P. Morgan analysts cited by The Associated Press. Businesses that rely on imports for both finished goods and raw materials could experience shortages as shipments wait at the docks.

Dig deeper: Read Mary Muncy’s report about the impending strike.