Tri-State area braces for possible dockworkers strike as midnight deadline passes
ELIZABETH, New Jersey (WABC) -- Tens of thousands of dockworkers on the East and Gulf coasts have walked off the job after their contracts expired on October 1 at midnight.
14 ports in total have been impacted by the move but the ripple effect could hurt a large swath of Americans.
On Monday, officials for the Port Authority of New York and New Jersey, along with the governor of New York, were weighing options and putting together contingency plans for the strike.
The two sides in the dispute have not met since June, and as of now, no talks are scheduled.
It's feared a walkout could send the nation's supply chain into chaos and cripple commerce "up and down" the East Coast.
"It's estimated that a strike would cost somewhere around $5 billion a day," said Margaret Kidd, director of supply chain and logistics at the University of Houston.
Negotiations between the Longshoremen's Union and the U.S. Maritime Alliance representing the shippers and the ports are at a standstill.
The ports from Texas to New England are responsible for nearly 35% of all U.S. imports and exports.
According to the National Retail Federation, "A one-day shutdown takes three to five days to recover from. The longer it goes, the worse it gets."
So what do the union members want? Higher wages and protections from automation.
The Maritime Alliance is offering a 40% pay increase, but the Longshoreman's Union is asking for a 70% raise.
The union claims that foreign shippers are making a boatload of money off the hardworking backs of the longshoremen. They are also seeking better health coverage.
The ILA says the shippers are also gouging customers by charging $30,000 per container, which is $6,000 more than it was just six weeks ago.
The Port Authority of New York and New Jersey said it is monitoring the situation and coordinating with partners across the supply chain for any potential impacts.
Port Authority Executive Director Rick Cotton does not expect a resolution by midnight and the gates of the Port Authority's marine terminals will close at 5 p.m. Monday.
"We will be able to successfully shut down operations at the port at a phased basis by midnight tonight," Cotton said. "A significant number of containers will remain stored at the port, close to 100,000. They will be stored safely at the port for whatever the duration of the strike."
Thirty-five inbound ships are expected to arrive over the next week and will anchor in the waters off the port for the duration of the strike.
"We have to fight for what we rightfully deserve. Let's get a contract. And let's move on with this world," said Harold J. Daggett, ILA president. Monday afternoon, the union released a statement saying:
"The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject. ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It's disgraceful that most of these foreign-owned shipping companies are engaged in a 'Make and Take' operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX's unfair wage packages."
"If they have the power to get more money from the steamship line, which they deserve, then more power to them," said Mark Nieves, united Drayage Drivers Association of NY/NJ. "But we also need more money. The changes, the necessary changes to better the industry for tomorrow."
"We even worked with the Teamsters at one point to unionize, but we couldn't do it because of the anti-trust laws," said Edison Villacis, Port Drivers Association.
New York Governor Kathy Hochul held a press conference Monday on the state's plans to deal with possible disruptions if the strike happens.
"As conversations between the ILA and USMX continue with a deadline of October 1, New York is prepared to support working families if a strike occurs," Governor Hochul said. "As the deadline looms, I urge the USMX and the ILA to come to an agreement that respects workers and ensures commerce can continue through our nation's busiest ports here in New York."
The potential strike is not anticipated to affect home heating oil, gasoline and diesel, as well as municipal solid waste in the Port of New York and New Jersey.
Cruise ships would be unaffected.
The governor said that state agencies are prepared if a strike happens.
The Port Authority has been working closely with the commercial trucking industry to ensure cargo containing essential goods, medical supplies, and food products that have already been offloaded are moved out of Port facilities and to their final destinations.
In anticipation of a potential disruption to the medical products supply chain, New York State Department of Health has communicated with hospitals and nursing homes across New York State and reminded them of the requirement to maintain a 60-day stockpile of personal protective equipment and other critical goods.
Division of Homeland Security and Emergency Services has all state stockpiles prepared to deploy any available resources including generators in the event they are needed.
The U.S. Chamber of Commerce is now calling on the Biden administration to invoke the Taft-Hartley Act, forcing dockworkers to stay on the job while negotiations continue.
White House Press Secretary Karine Jean-Pierre said the Biden administration will not step in to stop the port strike.
"We have made our message very clear, very clear, we support collective bargaining, we believe we'll try to come together...to get to a fair agreement, in good faith," Jean-Pierre said. "And we have been consistent throughout this administration about that."
The Maritime Alliance says it's committed to negotiating, but claims the union is not bargaining in good faith.
(Some information from ABC News)
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