East Coast dockworkers’ strike halts half of US port operations

Dockworkers across 36 ports in the US East Coast and the Gulf of Mexico struck work on Tuesday over dispute with employers over wages and other issues, halting cargo handling and movement of goods.

Workers belonging to the International Longshoremen's Association (ILA), which represents some 45,000 port workers, walked out from work early on Tuesday, after negotiations with the employer group, United States Maritime Alliance (USMX), for a new 6-year labour contract failed over disputes on issues like pay, terminal automation project etc.

The strike, the first large-scale disruption of work by the ILA since 1977, halted cargo movements at nearly half of the ports across the US. 

A prolonged strike that would bring shipments of everything, including food to automobiles, to a halt and could cost the economy an estimated $5 billion a day.

The disruption of trade flows across seaports from Maine to Texas could also affect jobs, and stoke inflation.

The ILA rejected the final proposal by the USMX saying it fell “far short of the demands of its members” and called for a shut-down of all ports from Maine to Texas.

ILA leader Harold Daggett blamed container ship operator Maersk and its APM Terminals North America for failing to agree on appropriate pay hike and demands to stop port automation projects. 

The USMX said it had offered to further raise the earlier proposed pay hike by nearly 50 per cent.

Daggett said ILA is prepared for a long-drawn strike and wil not rest until the managements agree on wages and protection against automation.

Analysts expect the US government to intervene if the strike continues. If the deadlock continues, it would have its effects on trade across Europe and Asia.