Labor Dispute at U.S. East and Gulf Coast Ports

By Lisa Baertlein, David Shepardson, and Daniel Wiessner

LOS ANGELES/WASHINGTON (Reuters) – Employers negotiating a labor contract at U.S. East and Gulf Coast ports have filed an unfair labor practice complaint against the union, accusing its leaders of refusing to resume talks before a potential strike set for Oct. 1.

The United States Maritime Alliance (USMX) filed the complaint with the National Labor Relations Board (NLRB), citing the International Longshoremen’s Association’s (ILA) repeated refusals to return to the bargaining table.

The six-year master contract between USMX and ILA expires on Sept. 30, with both parties deadlocked over wage negotiations. USMX has requested immediate injunctive relief from the NLRB to mandate the union’s return to negotiations.

Though uncommon, employers can file such complaints with the NLRB, which enforces U.S. labor law regarding collective bargaining and unfair practices. In rare instances, the NLRB may seek an injunction pending case outcomes, but this process can take weeks.

Responding, the ILA criticized USMX as an inadequate negotiating partner. Union leader Harold Daggett stated he rejected USMX’s attempts to negotiate a low-wage package.

Reports indicate the ILA is demanding a 77% wage increase, which USMX has deemed exaggerated. Experts anticipate the final agreement will exceed the 32% rise achieved by West Coast longshore workers last year.

Concerns are growing among companies dependent on ocean shipping, as a strike by ILA’s 45,000 members could shut down 36 ports responsible for over half of U.S. ocean trade covering essential goods such as food, medicine, and automotive parts.

Such a strike could lead to significant delays and increased costs, potentially burdening the U.S. economy weeks before the presidential election and impacting global shipping networks.

Economists at Oxford Economics project that the strike could reduce U.S. GDP by $4.5 billion to $7.5 billion per week.

The timing raises political stakes as Vice President Kamala Harris faces ex-President Donald Trump in the Nov. 5 election. However, a White House official announced President Biden does not plan to invoke the Taft-Hartley Act to halt the strike, urging all parties to negotiate in good faith.

Senior officials from the White House, Labor Department, and Department of Transportation are communicating directly with the involved parties.