Looming Port Strike Could Spur Ripple Effect at Grocery
Oct. 1 could prove a pivotal date for the U.S. food supply chain, as port workers have set that deadline for a possible strike. After months of negotiations, more than 40,000 workers at ports on the East and Gulf coasts are looking at making a labor move that would impact retailers around the country.
On Sept. 20, the vice president of the International Longshoremen's Association (ILA), Dennis Daggett, said that this would be the first such strike since 1977. “From Searsport, Maine to Brownsville, Texas, we are about to engage in one of the toughest battles our union has faced in decades. Strikes are never easy, but in today’s world, with labor laws stacked against us and corporate greed at an all-time high, it remains one of the most powerful tools we have in our fight for justice,” he declared, noting that longshore workers did not take time off during the pandemic or the ensuing period of supply chain bottlenecks.
[RELATED: Sam’s Club Expands Pay Increases for Front-Line Employees[
The unions are asking for a sizable raise over a six-year period and are also seeking protections against automation that could replace jobs. On the other side, operators and carriers represented in talks by the United States Maritime Alliance (USMX) point out that their offer includes a reasonable wage increase.
On Sept. 23, USMX released its own statement. “We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time,” the organization wrote.
The group also reported that it has been in touch with federal agencies including the U.S. Department of Labor and the Federal Mediation & Conciliation Service (FMCS) to keep the government apprised of negotiations and work status: “We would be open to working with the FMCS, as we have done successfully in the past, but that is only possible if both sides agree to mediation. Our goal remains the same – we want to bargain and avoid a strike, but time is running out if the ILA is unwilling to return to the table.”
While the strike would affect several industries, including the auto sector, food imports would be hard hit, including fresh fruit. For example, a majority of bananas come through ports in the East and Gulf coast. Exports will be likewise impacted, such as perishable meat products bound for key foreign markets.
In a recent blog post, Sarah Gilmore, director of government affairs at the Retail Industry Leaders Association, said that the strike would have a ripple effect across the supply chain at a particularly busy time of year. "A disruption in cargo movements would have profound consequences for retailers, manufacturers, and consumers across the country. East Coast and Gulf Coast ports are essential arteries in the U.S. supply chain. They facilitate the movement of goods and materials that support numerous industries, providing livelihoods for countless workers and bolstering the overall economic well-being of the nation,” she pointed out, adding, ”Each day of a strike increases congestion in U.S. ports, which quickly extends into trucking and rail networks, and loaded ships anchored offshore. This, in turn, affects operations at ports around the world as ship schedules slip and equipment is dislocated."
The White House could step in to help the sides reach a deal. President Biden has the authority to invoke the Taft-Hartley Act that would temporarily halt the strike to keep talks going. That action has not been taking since 2002, when then-President George W. Bush took action in a stalemate between the International Longshore and Warehouse Union and shipping companies on the West Coast.
