Shipping ports along the Gulf and East coasts ground to a halt after a work stoppage as two unions continued in a contract dispute.
The International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX) are at an impasse. Their current six-year contract expired at midnight Tuesday.
The ILA is asking for a 77% wage increase over the next six years and limits on automation, while the USMX was offering a 40% increase. That offer was increased to 50% Monday evening but no deal was struck by the deadline.
Dockworkers at ports from Maine to North Carolina to Texas began walking picket lines early Tuesday in the strike over wages and automation that could reignite inflation and cause shortages of goods if it goes on more than a few weeks.
The strike affecting 36 ports is the first by the union since 1977.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject”, the ILA said in a written statement on its website. “Meanwhile, ILA-dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.”