Dockworkers Strike In Baltimore, Supply Chain Concerns Begin

BALTIMORE, MD — Baltimore dockworkers went on strike Tuesday, joining a work stoppage at East and Gulf Coast ports that could disrupt the national supply chain.

Port of Baltimore workers are among the 45,000 striking at 36 ports from Maine to Texas. Dockworkers from the International Longshoremen's Association are pushing for higher wages and reduced port automation during their first strike since 1977.

The Baltimore Banner reported that over 100 people picketed in the Tuesday rain outside the Dundalk marine terminals on Broening Highway.

Signs read "Machines don’t feed families" and "No work without a fair contract," The Banner said. WJZ video showed workers carrying signs saying"Profit over people is unacceptable: Support ILA workers."

Logistics experts think the supply chain can handle a brief strike. They warn, however, that prolonged port closures could stifle holiday shipments, clog West Coast shipping terminals and bog down rail deliveries.

"The shorter the strike is, the less of the effect the downstream consumer will feel," Christina DePasquale, an associate professor of economics at Johns Hopkins University’s Carey Business School, told Maryland Matters. "However, if for some reason the strike went on, a week, two weeks, a month, that’s going to be a real negative to the supply chain because it’s the entire East Coast, right, it’s not just the port of Baltimore."

The ILA vowed to continue processing military cargo during the strike. Passenger cruises will also continue as scheduled at the affected ports.

The United States Maritime Alliance, which represents shippers, accused the ILA of negotiating in poor faith. The Maritime Alliance on Thursday filed an unfair labor practice complaint against the ILA through the National Labor Relations Board.

Leading to the strike, the union’s opening offer in the talks was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.

Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.

"USMX brought on this strike when they decided to hold firm to foreign owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth," Daggett said in a Tuesday press release. "We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve."

The union wants a complete ban on automation. It wasn’t clear just how far apart both sides are.

In a statement early Tuesday, the union said it rejected the alliance’s latest proposal because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.

Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.

But if it goes more than a few weeks, a work stoppage could lead to higher prices and delays in goods reaching households and businesses.

If drawn out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys and artificial Christmas trees to cars, coffee and fruit.

The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.

It also could snarl exports from East Coast ports and create traffic jams at ports on the West Coast, where workers are represented by a different union. Railroads say they can ramp up to carry more freight from the West Coast, but analysts say they can’t move enough to make up for the closed Eastern ports.

J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normal operations resume.

Retailers, auto parts suppliers and produce importers had hoped for a settlement or that President Joe Biden would intervene and end the strike using the Taft-Hartley Act, which allows him to seek an 80-day cooling off period.

But during a Sunday exchange with reporters, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in the potential work stoppage.

In an update Tuesday morning, the White House maintained that administration officials were working “around the clock” to help negotiations move forward. Biden and Vice President Kamala Harris were also “closely monitoring” potential supply chain impacts, the White House added, enlisting a task force to meet daily and prepare for any disruptions.

"The President has directed his team to convey his message directly to both sides that they need to be at the table and negotiating in good faith—fairly and quickly," the White House said in a Tuesday statement. "The President and Vice President believe collective bargaining is the best way for both American workers and employers to come to a fair agreement."

The Associated Press contributed to this report.