In a move that could have great impact on the economy in New Jersey and around the country, dockworkers from three dozen ports on the East Coast to Texas – including the Port of New York and New Jersey – went on strike early Tuesday morning.
The contract between the ports and approximately 45,000 members of the International Longshoremen’s Association expired at midnight Monday.
The strike, the first by the union since 1977, is based not only wages but potential automation.
Its impact on the supply chain, inflation and the November elections remains to be seen – with some reports saying the strike will cost the economy approximately $4 billion a day (though much of that could be made up if the strike is settled quickly).
The good news: The sides are talking.
The Associated Press reported that the U.S. Maritime Alliance, which represents the ports, had increased its offer to 50% raises over six years – and pledged to keep limits on automation in place from the old contract.
The union, the Associated Press reported, wants a complete ban on automation.
As you would expect, ILA President Harold Daggett said the union is ready to stay out for as long as it takes.
“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” he said.
As of this morning, the Biden Administration has said it will not intervene.
Michelle Siekerka, the CEO of the New Jersey Business & Industry Association, said she hopes the president will.
“While we have a very healthy respect for the collective bargaining process, the fact of the matter is the stakes are too high for New Jersey and the rest of the nation to be subject to supply chain shortages, higher prices and delays in goods reaching households and businesses,” she said.
“It’s critical that the federal government keep a close watch on both the ILA and the U.S. Maritime Alliance as negotiations continue – and to not wait long to invoke the Taft-Hartley Act if it appears this impasse cannot be resolved in short order.
“Our ports, especially here in New Jersey, are our gateways to goods that make up our way of life every day – from produce to manufacturing products and everything in between.
“With supply chain backlogs a recent, pandemic-era memory and with inflation only recently coming back down to Earth, now is not the time to force businesses to pay shippers for delays and for goods to arrive late as the holiday shopping season approaches.
“We urge the Biden administration to be at the ready to invoke Taft-Hartley to allow negotiations between both sides to continue, without negatively impacting our economy for an extended period of time.”
There is good news: Many of the products needed for the holiday season already have passed through the ports.
Still, the potential for a major disruption in the economy moving forward is there. Talks are expected to continue Tuesday.
