A massive dockworkers' strike threatens to shut down port operations in Boston
Dockworkers at Boston's Conley Container Terminal and other parts of the country began walking picket lines early Tuesday amid a strike against wages and automation that could reignite inflation and lead to product shortages if it continues for more than a few weeks. Masport warned customers that the port would stop receiving cargo when business closes on Monday and warned that remaining goods at the port would be unavailable until the strike ends. The contract between the port and the nearly 45,000 members of the International Longshoremen's Association expired at midnight. The work stoppage threatens to significantly tear up the country's supply chain, leading to potentially higher prices and delays for households and businesses if it continues for weeks. Because a strike by members of the International Longshoremen's Association could shut down operations at 36 ports — which handle about half of the goods shipped in and out of the United States. The U.S. Maritime Alliance, which represents ports, said Monday evening that both sides had backed away from their previous wage proposals. But no agreement was reached. The union's opening offer in negotiations was for a 77% pay increase over the six-year life of the contract, which President Harold Daggett said needed to make up for inflation and smaller increases over the years. ILA members earn a base salary of about $81,000 per year, but some can earn more than $200,000 annually with substantial overtime. But on Monday evening, the alliance said it had increased its offer by 50% over six years, and it promised to keep automation limits in place from the old deal. The union wants a total ban on automation. It was not clear how far apart the two sides were. “We are hopeful that it can initiate collective bargaining on other outstanding issues in an effort to reach an agreement,” the coalition statement said. On Tuesday, the union said it rejected the coalition's latest offer because it “fell far short of what ILA rank-and-file members are demanding in terms of wages and protections against automation.” There have been no formal talks between the two sides since June “We are prepared to fight as long as necessary, to remain on strike for as long as it takes, to get the wages and protection against automation that our ILA members deserve,” Daggett said in the statement. “They must now meet our demands to end this strike.” The alliance said its offering tripled employer contributions to retirement plans and strengthened health care options Supply chain experts say consumers will not see an immediate impact from the strike as most retailers have stocked up. On top of the product, the shipment of holiday gift items is in progress. But if it goes on for more than a few weeks, a work stoppage will significantly disrupt the country's supply chain, potentially leading to higher prices and delays in the delivery of goods to households and businesses. , the strike will force businesses to pay shippers for delays and cause some goods to arrive late during the peak holiday shopping season — potentially affecting supplies of anything from toys or artificial Christmas trees to cars, coffee and fruit. A strike is likely to happen almost immediately Impact on the supply of perishable imports such as bananas, for example. According to the American Farm Bureau Federation, the ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation's supply. It could also block exports from East Coast ports and create traffic jams at West Coast ports Coast, where workers are represented by a different union. Railroads say they can ramp up to move more freight from the West Coast, but analysts say they won't be able to move enough to closed East ports.___Krisher reported from Detroit. Associated Press reporters Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatt Grantham-Phillips in New York, Dee-Anne Durbin in Detroit, Josh Bock in Washington and Annie Mulligan in Houston contributed to this report.
Dockworkers at Boston's Conley Container Terminal and other parts of the country began walking picket lines early Tuesday amid a strike against wages and automation that could reignite inflation and lead to product shortages if it continues for more than a few weeks.
Masport warned customers that the port would stop receiving cargo during the close of business on Monday and warned that remaining cargo at the port would be unavailable until the strike ends.
The contract between the port and the nearly 45,000 members of the International Longshoremen's Association expired at midnight.
The work stoppage threatens to significantly tear up the country's supply chain, leading to potentially higher prices and delays for households and businesses if it continues for weeks. Because of a strike by members of the International Longshoremen's Association, 36 ports – which handle about half of the goods shipped in and out of the United States – could cease operations.
The U.S. Maritime Alliance, which represents the ports, said Monday evening that both sides had backed away from their previous wage proposals. But no agreement was reached.
The union's opening offer in the talks was for a 77% pay increase over the six-year life of the contract, which President Harold Daggett said was necessary to account for inflation and smaller increases over the years. ILA members make a base salary of about $81,000 per year, but some can earn more than $200,000 annually with substantial overtime.
But on Monday evening, the alliance said it had increased its offer by 50% over six years and it pledged to keep automation restrictions from the old contract. The union wants a complete ban on automation. It was not clear how far apart the two sides were.
“We are hopeful that it can fully resume collective bargaining on other outstanding issues in an effort to reach an agreement,” the coalition's statement said.
In a statement early Tuesday, the union said it rejected the coalition's latest offer because it “fell far short of what ILA rank-and-file members are demanding in terms of wages and protections against automation.” There have been no formal talks between the two sides since June.
“We are prepared to fight as long as necessary, to stay on strike for as long as it takes, to get the wages and protection against automation that our ILA members deserve,” Daggett said in the statement. “They have to meet our demands now to end this strike.”
The coalition said its offering tripled employer contributions to retirement plans and strengthened health care options.
Supply chain experts say consumers won't see an immediate impact from the strike as most retailers stockpiled products, pushing ahead with shipments of holiday gift items.
But if it lasts more than a few weeks, a work stoppage will significantly disrupt the country's supply chain, potentially leading to higher prices and delays in the delivery of goods to households and businesses.
If called off, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for the peak holiday shopping season — potentially affecting supplies of anything from toys or artificial Christmas trees to cars, coffee and fruit.
For example, the strike will have an almost immediate impact on the supply of perishable imports such as bananas. According to the American Farm Bureau Federation, the ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation's supply.
This could block exports from East Coast ports and create traffic jams at West Coast ports, where workers are represented by a different union. Railroads say they can ramp up to move more freight from the West Coast, but analysts say they can't move enough for closed eastern ports.
___
Krisher reported from Detroit. Associated Press reporters Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatt Grantham-Phillips in New York, Dee-Anne Durbin in Detroit, Josh Bock in Washington and Annie Mulligan in Houston contributed to this report.
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