If the East and Gulf Coast longshoremen's union representatives and employers fail to negotiate a new labor contract, they might go on their first strike since 1977. These ports handle half of the country’s imports, and a strike could lead to significant disruptions.
Longshoremen offload shipping containers and other cargo, such as automobiles, from vessels into ports. Without them, ports cannot operate.
New York Gov. Kathy Hochul is preparing the state for the worst.
“We're deeply concerned about the impact that a strike could have on our supply chains, especially when it comes to critical goods like medical supplies and others,” Hochul said at a press conference on Monday before the strike deadline. “We're fully prepared to support our communities and maintain essential services if a strike does occur.”
The International Longshoreman Association (ILA) represents East Coast dockworkers. It is negotiating with the United States Maritime Alliance (USMX). About 47,000 longshoremen are expected to strike, 4,500 of whom work in the tri-state area ports.
The New York and New Jersey Port Authority is hastening deliveries of essential goods like food and medical supplies from its facilities. Hochul said the state is also stockpiling 100,000 containers filled with consumer goods and automobiles.
Many industries are also bracing for the potential strike. Some shipments have been diverted to West Coast ports, and other importers ordered Christmas goods four months earlier than usual to process them before the longshoremen’s contract expires. The strike could tighten supply chains and cost the economy billions of dollars.
Hochul assured New Yorkers that since the state mainly receives food from within the state and imports from Canada, California and Mexico, food supplies will not be impacted. However, some foods, such as mangos and bananas, that are imported from abroad will be significantly impacted if the strike lasts.
“People do not need to rush out to the grocery store and stockpile goods like they did during the pandemic,” Hochul said. “We don't anticipate shortages of essential goods anytime soon.”
Under the current contract, longshoremen earn $39 per hour. Their union is asking for a yearly $5 per hour raise until the end of the new six-year contract, which would nearly double their rate in the final year to $69 per hour.
“I urge USMX and the ILA to come to an agreement that respects workers and ensures the flow of commerce through our ports. And the stakes are very high,” Hochul said.
