Jonathan Holloway President | Official website of Rutgers University
Jonathan Holloway President | Official website of Rutgers University
More than 45,000 dockworkers began a strike at 12:01 a.m., causing significant disruptions in container ship traffic and halting operations at the Port of New York and New Jersey, along with numerous other ports along the East and Gulf coasts.
The International Longshoremen’s Association (ILA), representing the workers, is engaged in a contract dispute with the United States Maritime Alliance (USMX), which represents shipping and terminal companies.
CNN reports that this strike “could become the most disruptive strike to the U.S. economy in decades,” potentially leading to product shortages and price increases just before the holiday shopping season.
Will Brucher, an assistant teaching professor in the School of Management and Labor Relations who has studied union organizing at ports, spoke to Rutgers Today about the significance and potential impact of the strike.
“This strike is historic. It’s a reminder that unions can and will flex their economic muscle to respond to their members’ needs. The union’s demands cannot be ignored by the United States Maritime Alliance or the many corporations that rely on the ports for their operations. The industry is enormously profitable, and it is reasonable for International Longshoremen’s Association members to fight for fair wages," Brucher said.
USMX has reportedly offered a 40% wage increase over six years, but ILA seeks up to 77% for its highest-paid workers. According to Brucher, "The ILA wants wage increases that reflect the increased cost of living due to inflation and the extra work their members have been doing as a result of the recent boom in shipping."
West Coast members of another union, International Longshore and Warehouse Union (ILWU), secured a new contract last year with higher wages than those currently offered to ILA members. This has driven ILA's demand for comparable wages and better benefits. Job security amid increasing automation remains another major issue.
The ILA halted negotiations after accusing APM Terminals and Maersk of installing an automatic gate at Port of Mobile, Alabama, violating their contract terms. Automation has long been a concern for longshore unions since cargo containerization began in the late 1950s. Current fears focus on generative AI potentially leading to job losses while increasing workloads for remaining employees. The union seeks contract language protecting jobs against such technological changes.
While cargo operations at East Coast and Gulf Coast ports have ceased immediately due to the strike, its effects may not be immediate due to ongoing West Coast port operations and domestic production of many goods. However, as stock levels drop, consumers could face shortages and higher prices given America's import-based economy.
Predicting how long this strike will last remains difficult. Historically, longshore strikes tend to extend longer than most others; for instance, an ILA strike in 1977 lasted 44 days. This uncertainty underscores why some believe industry leaders need to present better offers promptly.
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