Port workers from Maine to Texas started striking at midnight on August 1. The Port of Virginia (POV) confirmed that no cargo is moving in or out of its port during this work stoppage.
This strike has closed several Hampton Roads operations, including:
- Norfolk International Terminals
- Virginia International Gateway
- Newport News Marine Terminal
- Pinners Point Container Yard
- Portsmouth Chassis Yard
- Reefer Service Area
- The Damage Annex
During strike, the port will not be receiving vessels at the impacted locations. No containers will be moved in or out by train, and the truck gates are closed, said POV.
The impacted locations have also stopped receiving empty containers or providing any chassis or repair services. And POV said the Richmond Express barge service is idle.
Who’s striking & why
The United States Maritime Alliance (USMX) represents employers in the maritime industry, including container carriers, marine terminal operators and port associations.
The International Longshoremen’s Association (ILA) is North America’s largest maritime union.
The 6-year master contract between USMX and ILA expired on September 30, and the lack of a new agreement has prompted port strikes that involve approximately 45,000 workers across the East Coast and Gulf, according to USA Today.
The ILA position
Two of the ILA’s most notable demands are raises and protecting jobs from the scourge of automation.
“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 statement hours before the strike began.
“It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages,“ the ILA statement added.
During a Q & A in early Sept, ILA President Harold Daggett put the USMX profit into perspective claiming, “MSC is the richest shipping company in the world. Made three times the money than Amazon.”
“One of the companies—I won’t mention his name—he took himself a Christmas bonus of $4 billion. He took it out for him and his family,” Daggett said.
He added that a French company gave all the employers 50 months of salary as Christmas gift. “They have so much money they don’t even know what to do with it.”
“They know they’re building up terminals. They want to go automation. They want more money now. Get rid of these men. We don’t need them no more. It’s a big change going on.”
USMX statement
The day before the strike USMX stated that during prior 24 hours counteroffers related to wages had been exchanged between the parties.
“The USMX increased our offer and has also requested an extension of the current Master Contract, now that both sides have moved off their previous positions. We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement.
“Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation” its statement said.
Impact of strikes
USA Today reported that the strike across the 36 ports involved is projected to cost the U.S. economy up to $5 billion a day.
Jonathan Gold, vice president of supply chain and customs policy at the Nation Retail Federation estimates that for each day of the strike, it takes about 3-5 days to clear the backlog and “the longer it goes, the more it gets compounded,” USA Today stated.
The POV gave the impression it’s ready to get Virginia operations back online whenever workers come back.
“We have a resumption of operations plan where we safely and methodically bring the terminals back online and have successfully executed this plan several times,” said POV.
Govt. response
Along with over 60 other Congressmembers, two from Virginia, Representatives Rob Wittman and Jennifer Kiggans, signed a letter to the President.
“Given the devastating economic consequences of a potential strike and the Administration’s lack of engagement to date, we urge you to give immediate attention to this matter, to aid in these negotiations, and find a reasonable resolution to these contract disputes,” that letter stated.
The day before the strike, President Biden reiterated that he will not intervene in the strike “because it’s collective bargaining. I don’t believe in Taft-Hartley,” he said referring to federal legislation that can trigger a n 80-day cooling period that pushes people back to work.
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