East Coast Dockworkers Go on Strike
October 1, 2024 | Thousands of dockworkers from Maine to Texas have gone on strike as the International Longshoremen’s Association (ILA) shut down all East Coast and Gulf Coast ports at midnight on Tuesday, October 1. The contract between the union and the United States Maritime Alliance (USMX) expired on September 30 and the two sides have not come to an agreement over wages and automation.
The U.S. East Coast and Gulf Coast ports handle billions of dollars in trade monthly and about 43 percent of all U.S. imports, according to supply chain and logistics company ITS Logistics. Analysts at Oxford Economics estimate that the strike could cost $4.5 to $7.5 billion per week, and the overall economic impact will depend on the length of the work stoppage.
“The strike threatens to severely disrupt the U.S. toy industry, which contributes $157.5 billion to the economy, by disrupting the supply chain and preventing critical holiday shipments from reaching shelves in time,” said Greg Ahearn, president & CEO of The Toy Association. “The Toy Association is part of a coalition of impacted industries that continues to urge the Biden administration to immediately intervene on this issue and help the ILA and USMX come to a solution at the bargaining table as soon as possible.”
Ahearn recently spoke with national news outlets, The Associated Press and USA Today, to raise awareness about the strike’s negative impact on consumers and the toy industry in the lead-up to the holiday season.
“It hits many ways,” he said in an interview with The Associated Press. “From a consumer perspective, it starts with delays in availability and then starts to surface as product shortages within toys. At retail for the toy industry, it results in potentially higher prices based on scarcity and increased costs.”
The USMX and ILA exchanged counter offers on Monday, with USMX increasing its wage proposal and requesting an extension of the current master contract, which ILA ultimately rejected. USMX’s offer included a nearly 50 percent wage increase, tripled employer contributions to retirement plans, improved healthcare options, and maintaining the current terms on automation. However, reports state that the ILA is asking for a 77 percent wage increase over six years.
The ILA represents 85,000 longshore workers along the East Coast, Gulf Coast, Puerto Rico, Great Lakes, and major U.S. rivers. The strike affects work at 14 ports, including Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.
The Toy Association continues to remain active in coalition activities and stay engaged with the situation to keep members updated with any developments.