Topline
Dockworkers along the East Coast and Gulf Coast were reportedly set to resume negotiations Tuesday with the United States Maritime Alliance, in an effort to avoid another strike ahead of the Jan. 15 deadline to reach a new contract largely focused on automation—just months after a three-day dockworker strike halted shipments at more than a dozen ports.
Dockworkers gather at the Bayport Container Terminal in Seabrook, Texas, on Oct. 1, 2024.
Key Facts
In October, members of the International Longshoremen’s Association (ILA) went on strike and ultimately returned to work after agreeing to a 61.5% pay raise over six years—which is lower than they originally asked for—and to push discussion on other disputed issues until January.
The main hold up in the current negotiations is around automation, with workers expressing concern about the use of semi-automated cranes that stack containers and the threat they pose to human jobs, Reuters reported.
Dennis Daggett, executive vice president of ILA, said in a statement on Dec. 2, 2024, that the union is not “against progress, innovation, or modernization—but we cannot support technology that jeopardizes jobs, threatens national security, and puts the future of the workforce at risk.”
In USMX’s most recent statement, released on Dec. 20, 2024, it argued the use of upgraded technology can “bolster U.S. industries by creating supply chains that are more resilient and efficient” in a way that “not only protects jobs, but adds new jobs as our operations expand.”
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What Would A Port Strike Mean For Goods?
The three-day October strike—which Reuters reported was the ILA’s first major work stoppage since 1977—had a relatively small impact because it ended so quickly, though the threat of a drawn-out strike prompted concerns of supply chain disruptions and potential economic turmoil. It affected major ports from Maine to Texas, and at least 54 container ships had lined up outside various ports waiting to be unloaded during the strike, according to Reuters. If a strike this time around lasted longer than three days, it would likely have more severe impacts. During the October strike, Oxford Economics said a strike could “reduce U.S. economic activity by $4.5 billion to $7.5 billion per week.” CBS News reported this week that a longer strike could “hurt retail profitability” because of a delay in deliveries and goods arriving past their peak periods.
How Many Port Workers Could Go On Strike?
More than 20,000 workers could go on strike starting Jan. 16 if a new contract is not agreed upon, CBS News reported.
How Long Was The Last Strike?
The strike in October lasted just three days—from Oct. 1, 2024, through Oct. 3, 2024—and ended after the union and USMX reached a tentative agreement on pay. At that time, workers agreed to go back to work and extend their current contract through Jan. 15.
What Is The Taft-Hartley Act?
The 1947 Taft-Hartley Act gives the president authority to intervene in a strike if it happens and send dockworkers back to their jobs for an 80-day period. President Joe Biden did not invoke it when the workers were on strike in October, and President-elect Donald Trump—who will take office on Jan. 20, just days after a strike could begin—has signaled he supports the ILA, so it’s unclear if he would invoke it and risk losing support despite the potential reduction in U.S. economic activity.
What Has Trump Said About A Potential Port Strike?
In a December Truth Social post after meeting with Dennis Daggett and ILA president Harold Daggett, Trump said he has “studied automation” and that “the amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen.” Trump went on to say he would rather foreign companies spend money on “the great men and women of our docks” than machinery that will need to be replaced.
What To Watch For
More information from either of the groups involved in negotiations. Forbes has reached out to the ILA and USMX for comment.
Further Reading
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