A potential strike by members of the International Longshoremen's Association could begin Tuesday, Oc. 1, impacting major East and Gulf Coast ports if ongoing contract negotiations fail.
Here are five things to know:
- A potential strike by the ILA could begin Oct. 1 if a new labor contract is not reached with the United States Maritime Alliance, marking the first strike at all East and Gulf Coast ports since 1977.
- The strike would halt operations at some of the busiest ports in the U.S., costing the economy billions of dollars each day and disrupting supply chains, The New York Times reported Sept. 30. JPMorgan analysts told the Times the strike could cost the economy $5 billion per day, or about 6% of gross domestic product.
- President Biden said he is not considering using federal labor laws to force the longshoreman back to work as the administration seeks a negotiated resolution.
- The ILA, representing 47,000 members, is in a standoff with the UMSX over wages and benefits. The union is currently demanding a $5 per hour raise for the next six years while the current top pay is $39 per hour.
- Many businesses are also rushing to move goods before the strike deadline and although West Coast ports remain open, they cannot fully absorb the cargo from East and Gulf Coast ports, the Times reported.