US Port Officials Gird For Strike As Labor Talks Stay Stuck

Officials at 14 ports along the US East and Gulf coasts were making last-minute preparations on Monday for a likely labor strike that could drag on the US economy just ahead of a presidential election.

With contract talks stalled between the International Longshoremen's Association (ILA) and the business group United States Maritime Alliance (USMX), tens of thousands of dockworkers are poised to walk off the job after midnight at the expiration of a six-year contract.

"While we have encouraged both sides to reach an amicable agreement at the bargaining table, all signs are that there will be a strike," Port Authority Executive Director Rick Cotton said Monday at a news conference where New York officials sought to reassure consumers that they would not lose access to food and other essential goods.

A walkout would be the ILA's first since 1977. The contract directly affects some 25,000 ILA members at 14 large US ports, including New York/New Jersey, Boston, Philadelphia, Savannah, New Orleans and Houston.

New York Governor Kathy Hochul said port officials were scrambling to clear out as many items from the port as possible before the impending stoppage. Other ports such as New Orleans and Savannah have offered extended hours in recent days ahead of the deadline.

The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the pandemic.

Shipping interests are engaging in a "disgraceful" effort "to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers," the ILA said on Monday.

USMX has blamed the ILA, saying the union has refused to meaningfully negotiate. Last week, the shippers group filed a complaint with US labor regulators to compel talks.

Oxford Economics estimated that the strike would dent US gross domestic product by $4.5 billion to $7.5 billion per week. The overall economic hit depends on the length of the strike, analysts say.

"A port strike would paralyze US trade and raise prices at a time when consumers and businesses are starting to feel relief from inflation," said Erin McLaughlin, senior economist at the Conference Board. "There's no easy Plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternative options are limited."

Under the Taft-Hartley Act, President Joe Biden has authority to order the parties to resume talks for an 80-day "cooling off" period.

But Biden said Sunday he would not intervene in labor negotiations, citing his support of collective bargaining rights.

At Monday's news conference, New York officials emphasized that they have been preparing for a likely US dockworkers strike.

"We don't anticipate shortages of essential goods anytime soon," Hochul said. "People do not need to rush out to the grocery store and stockpile goods like they did during the pandemic."

Hochul noted that pharmaceutical products will not be affected because they are typically flown in and not sent by ship. State officials are monitoring other medical supplies, but stockpiles are adequate for the foreseeable future, she said.

But Hochul cited automobiles and semiconductors as items that could be affected more quickly. She also said a lengthy strike could limit availability of fresh foods such as bananas.

"The wholesale food supply is resilient here in New York," Hochul said. "We're not concerned at all about any shortages of foods overall, maybe individual products."