NEW YORK — With a strike deadline looming, the union for 45,000 dockworkers and the group representing East and Gulf Coast ports have exchanged wage offers, leaving a ray of hope that a deal can be reached without a major work stoppage.
In a statement, the U.S. Maritime Alliance, which represents 36 ports from Maine to Texas, said that both sides have moved from their previous positions. The alliance said it also asked the union to extend the current contract.
The International Longshoremen’s Association is threatening to strike at 12:01 a.m. Tuesday in a move that could silence ports that handle about half the ship cargo coming in and going out of the U.S.
A message was left Monday evening seeking comment from the union.
The Alliance said its latest offer would increases wages by nearly 50% over the six-year contract, and triple employer contributions to retirement plans. The offer also would strengthen health care options and keep current language that limits automation.
The two sides had not held formal negotiations since June, and a strike appeared imminent. But in a statement Monday morning, the union said the ports had refused its demands for a fair contract and the alliance seemed intent on striking. The alliance has said it was willing to bargain.
A work stoppage would significantly snarl the nation’s supply chain, potentially leading to higher prices and delays in goods reaching households and businesses if it drags on for weeks.
If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees, to cars, coffee and fruit.
A strike could have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports that could be affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.
Americans could also face higher prices as retailers feel the supply squeeze.
“If the strikes go ahead, they will cause enormous delays across the supply chain, a ripple effect which will no doubt roll into 2025 and cause chaos across the industry,” noted Jay Dhokia, founder of supply chain management and logistics firm Pro3PL.
Dhokia added that East Coast ports aren’t the only ones at risk for disruption, as concern leading up to the strike has already diverted many shipments out West, adding to route congestion and more pressure on demand. Impacts will also be felt internationally — particularly in places like the United Kingdom, he said, where the U.S. is its largest trading partner.
ILA members are demanding higher wages and a total ban on the automation of cranes, gates and container-moving trucks used in the loading or unloading of freight.
A strike by the ILA workers — set to impact ports from Maine to Texas — would be the first by the union since 1977. West Coast dockworkers belong to a different union and aren’t involved in the strike.
If a strike were deemed a danger to U.S. economic health, President Joe Biden could, under the 1947 Taft-Hartley Act, seek a court order for an 80-day cooling-off period. That would suspend the strike.
All eyes are on what, if any, action the administration might take — particularly just weeks ahead of a tight presidential election. But Biden has signaled that he will not exercise this power.
During an exchange with reporters on Sunday, Biden said “no” when asked if he planned to intervene in the potential work stoppage.
“Because it’s collective bargaining, I don’t believe in Taft-Hartley,” he said.
At a briefing Monday, White House press secretary Karine Jean-Pierre reiterated that the administration had never invoked Taft-Hartley “to break a strike and are not considering doing so now.” She added that top officials were still urging both parties to return to the bargaining table and negotiate in good faith.
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Krisher in reported from Detroit. AP Writers Mae Anderson in New York, Stephen Groves in Dover, Delaware, Dee-Ann Durbin in Detroit and Zeke Miller in Washington contributed to this report.
