Longshoremen to Strike, Supply Chains at Risk

Longshoremen to Strike, Supply Chains at Risk
Longshoremen to Strike, Supply Chains at Risk. Credit | REUTERS

United States – The International Longshoremen’s Association union said the port strike on the U.S. East Coast and the Gulf of Mexico would commence on Tuesday – an action that may lead to disruptions and disruptions of the supply chain.

Heart of Dispute

“United States Maritime Alliance … continues to deny a 50-year-long wage discrimination,” the union added in a statement. The employers for the East and Gulf Coast longshore industry are represented by the United States Maritime Alliance, also commonly referred to as USMX, as reported by Reuters.

Should members of the ILA go on a strike at ports ranging from Maine to Texas, then it would be the first time in twenty-eight years that the union would go on a coast-wide strike, and this would cripple the major ports of the country that contribute toward half of America’s ocean-borne cargo traffic.

One of the sources said that there were no discussions on Sunday, and similarly, there are no plans to do so before Monday midnight. The union stated earlier that the strike does not intend to block military cargo operations.

White House Urges Swift Resolution

White House spokesperson Robyn Patterson said late Sunday that over the weekend, the officials called for the representatives of USMX ‘to come to a wise deal that is wise and swift – one that is proportional to the success of the companies.” The officials also shared the same message with ILA, as per her testimony.

Earlier the same day, President Joe Biden congratulated unionized dock workers, stating that he would not intervene to stop a walkout if the unionized dock workers could not agree on a new contract before October 1.

“It’s collective bargaining. Asked by the press, he replied, I don’t believe in Taft-Hartley. Presidents can also step in the labor disputes that are deemed to interfere with national security or safety by utilizing the federal Taft-Hartley Act, through which he or she can order the freeze of the labor dispute for 80 days.

Reuters reported on the 17th of September that Biden had no intention to use the Taft-Hartley provision as informed by the White House.

A strike could halt the delivery of almost everything from food to automobiles at major ports – as a labor conflict that threatens jobs and spices up inflation less than a month before the US presidential election.

The Business Roundtable, which is an association of chief executives of large and mainly American companies, expressed its concern “On the possible strike at the East Coast and Gulf Coast ports.”

The group explained that the shutdown could result in the loss of billions of dollars each day, “detrimental to American businesses, workers as well as consumers.” It is in this regard that we appeal to both parties to reach a consensus before the deadline of Monday night.

Union Demands Pay Raises and Halt to Automation

For several months, the union has maintained that if companies such as container ship operator Maersk (Maersk. CO) and its APM Terminals North America do not provide appreciable pay rises and halt terminal automation programs, they will close the 36 ports under their jurisdiction, as reported by Reuters.

Businesses that depend on ocean transportation to acquire essential imports or export goods are concerned about the disagreement.

The ILA has been charged with refusing to negotiate by the USMX employer group.