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Ports Rush to Reopen After Dockworker Strike Is Suspended

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Days after tens of thousands of longshoreman along the East and Gulf Coasts walked out, their union and their bosses reached a tentative agreement on wages.Hours after a longshoremen’s union on the East and Gulf Coasts agreed to suspend its strike, major ports rushed to reopen on Friday and get cargo to businesses that have spent the last few days racked with fear over lost sales.The strike, which began on Tuesday and shut down many of the nation’s largest shipping hubs, threatened to weaken the economy weeks ahead of a national election. The Biden administration spent the last few days pressing the United States Maritime Alliance, the group representing port employers, and the union, the International Longshoremen’s Association, to find a way to end the strike.The two sides announced late Thursday that they had reached a tentative agreement on wages — a 62 percent increase over six years — and said they were extending the current contract until mid-January to negotiate other issues. The biggest remaining one is the use of automated machinery at the ports, which the I.L.A. considers a job killer. It was the first full-scale stoppage at East and Gulf Coast ports since 1977.Labor experts say the I.L.A. has more leverage in contract negotiations than unions in most other industries, because a walkout can shut down shipping facilities for which there are no practical alternatives. Labor experts said the wage increase was a big victory for the I.L.A. and its combative president, Harold J. Daggett, a 78-year-old, third-generation dockworker.“The I.L.A. seized the moment,” said William Brucher, an assistant professor at the Rutgers School of Management and Labor Relations. “Things really aligned in their favor.”Analysts said the strike was unlikely to lead to higher prices for consumers. Many businesses, anticipating the walkout, sped up their shipments so they could receive them before this week, softening the blow for many.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Harold Daggett, Port Strike Leader, Seeks Big Raises for Dockworkers

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    Harold J. Daggett is seeking big raises for longshoremen on the East and Gulf Coasts who have fallen behind workers on the West Coast.Nearly two decades ago, Harold J. Daggett was accused of being part of the mob’s efforts to control a powerful union, the International Longshoremen’s Association.He was a midlevel official of the union. After a high-profile trial, a jury acquitted him of fraud and extortion conspiracy, and he joined reveling supporters outside the Brooklyn federal courthouse. Motioning toward the building, he asked onlookers, “What doorway do I have to go through to get my reputation back?”Now, after 13 years as the union’s president, Mr. Daggett is seeking a different type of victory.He is leading a strike that began on Tuesday, shutting down most trade at a dozen big ports on the East and Gulf Coasts. The union, whose members move containers and other cargo on and off ships, is demanding much higher wages, improved benefits and limits on labor-saving technology.Mr. Daggett has cast the strike as a battle against large multinational corporations that earned outsize profits during the pandemic-related supply chain chaos. He has asserted that his 47,000 members have the upper hand because their work is essential to the automakers, retailers and other businesses that depend on the ports.“We’re going to win this thing,” Mr. Daggett, 78, said on Tuesday, along with an expletive, as members picketed outside a port terminal in New Jersey. “They can’t survive too long.”Some labor experts say Mr. Daggett is well positioned to get a good deal. “If they stop working, the goods stop moving,” said William Brucher, an assistant professor at the Rutgers School of Management and Labor Relations. “They have real economic power and leverage.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    in Economy

    Port Strike on the East and Gulf Coasts: What to Know

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    Thousands of dockworkers who load and unload cargo ships could walk off the job on Tuesday, halting nearly all activity at ports from Maine to Texas.Thousands of unionized dockworkers on the East and Gulf Coasts could go on strike as early as Tuesday, stranding cargo and sending ripples through supply chains for consumer goods and manufacturing parts.A contract between the operators of port terminals and the International Longshoremen’s Association, covering workers who load and unload cargo ships at three dozen ports, is set to expire on Monday. Their facilities include massive container ports in New Jersey, Virginia, Georgia and Texas, as well as the Port of Baltimore, a major hub for the import and export of vehicles and heavy machinery.The port operators group, the United States Maritime Alliance, and the union remain at an impasse over wage increases. Federal officials have said President Biden is not planning to invoke a nearly 80-year-old law to force dockworkers back to work if they strike. It would be the first such walkout at all these ports since 1977.Which ports and goods would be affected?Workers at ports from Maine to Texas would walk off the job at 12:01 a.m. Tuesday. These ports handle about half of all goods shipped to the United States in containers. One of them, the Port of New York and New Jersey, is the third busiest in the country.Longshoremen play a crucial role in the movement of cargo. They are responsible for loading and unloading ships, and they secure vessels that arrive and depart from U.S. ports. For the most part, ocean transport to and from these ports can’t happen without them.Cargo that could be affected by the strike includes everyday consumer goods, like bananas, many of which come through a port in Delaware. Just over half of imported apparel, footwear and accessories also come through East Coast ports. Manufacturing parts and cars move through these ports, too.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    As Strike Looms, Port Operators Ask Regulator to Force Dockworkers to Negotiate

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    The group that represents port terminal operators said the International Longshoremen’s Association was refusing to negotiate a new contract before a Monday deadline.Days ahead of a possible strike by longshoremen on the East and Gulf Coasts, port employers said on Thursday that they were asking a federal labor regulator to force the dockworkers’ union to resume negotiating a new contract.The United States Maritime Alliance, which is made up of port terminal operators, said it had filed an “unfair labor practice” complaint at the National Labor Relations Board after, it said, the International Longshoremen’s Association repeatedly refused to negotiate. The alliance said it wanted the labor board to rule that the union must negotiate with the employers.In a statement on Thursday, Jim McNamara, an I.L.A. spokesman, called the charge a “publicity stunt” that illustrated that the port employers were “poor negotiating partners.”Last week, the union said the two sides had “communicated multiple times in recent weeks,” and it contended that a stalemate existed because the Maritime Alliance was offering “an unacceptable wage increase.”A strike could begin on Tuesday, after the current labor contract expires on Monday. The I.L.A. broke off talks in June, contending that it had discovered that an employer was using labor-saving technology at the port in Mobile, Ala., that it claimed was unauthorized under the current contract.A strike would close down nearly all activity at ports from Maine to Texas — including at the Port of New York and New Jersey, the third busiest in the country. Analysts say even a short walkout could deal a blow to the economy. Fearing a strike, importers have been bringing in goods before next week and diverting some shipments to West Coast ports.Officials in the Biden administration have said President Biden is not planning to force dockworkers back to work, which the 1947 Taft-Hartley Act authorizes him to do. But economists said Mr. Biden might well end up invoking the act if a strike dragged on.Under the expiring contract, longshoremen earn $39 an hour. A person familiar with the negotiations said the union was asking for a $5-an-hour raise in each year of the new contract, which would last for six years. The person said employers were offering annual raises of $2.50 an hour.The Maritime Alliance said Monday that it had been contacted by the Federal Mediation and Conciliation Service, a government agency that helps management and unions negotiate labor contracts.Federal labor law says it is unlawful for a labor organization to refuse to negotiate on behalf of its members. More

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    in Economy

    An East Coast Port Strike Could Shake the Economy

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    Businesses are preparing for a strike by dockworkers on the East and Gulf Coasts, which could begin Oct. 1 if negotiations don’t yield a new contract.With dockworkers on the East and Gulf Coasts threatening to strike on Oct. 1, businesses have been accelerating imports, redirecting cargo and pleading with the Biden administration to prevent a walkout.Some importers started ordering Christmas goods four months earlier than usual to get them through the ports before a labor contract between the operators of port terminals and the International Longshoremen’s Association expires next Monday.Many shipments have been diverted to West Coast ports, where dockworkers belong to a different union that agreed a new contract last year. The ports of Long Beach and Los Angeles say they are handling at least as many containers as they did during the pandemic shipping boom of 2021-22.Despite those measures — and all the problem-solving skills that supply chain managers developed during the turbulence of recent years — a short strike could lead to significant disruptions. JPMorgan transportation analysts estimate that a strike could cost the economy $5 billion a day, or about 6 percent of gross domestic product, expressed daily. For each day the ports are shut down, the analysts said, it would take roughly six days to clear the backlog.Chris Butler, the chief executive of the National Tree Company, which sells artificial Christmas trees and other decorations, said his company had brought in goods early and made greater use of West Coast ports. But he estimated that 15 percent of his goods would still be stranded by a port strike.“I’m very unhappy,” said Mr. Butler, who is based in northern New Jersey. “We’re doing everything we can to mitigate it. But there’s only so much you can do when you’re at the mercy of these ports.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 125 Shares189 Views

    in Economy

    Will Automation Replace Jobs? Port Workers May Strike Over It.

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    A contract covering longshore workers on the East and Gulf Coasts will expire at the end of September, but talks have been stalled over the use of equipment that can function without human operators.When a dockworkers’ union broke off contract talks with management in June, raising the likelihood of a strike at more than a dozen ports on the East and Gulf Coasts that could severely disrupt the supply chain this fall, it was not over wages, pensions or working conditions. It was about a gate through which trucks enter a small port in Mobile, Ala.The International Longshoremen’s Association, which has more than 47,000 members, said it had discovered that the gate was using technology to check and let in trucks without union workers, which it said violated its labor contract.“We will never allow automation to come into our union and try to put us out of work as long as I’m alive,” said Harold J. Daggett, the union’s president and chief negotiator in talks with the United States Maritime Alliance, a group of companies that move cargo at ports.The I.L.A., which represents workers at economically crucial ports in New Jersey, Virginia, Georgia and Texas, has long resisted automation because it can lead to job losses.Longshoremen have grim memories of how past innovation reduced employment at the docks. Shipping containers, introduced in the 1960s, allowed ports to move goods with fewer workers. “You don’t have to pay pensions to robots,” said Brian Jones, a foreman at the Port of Philadelphia, who said he’d vote for a strike if it came to it. He began working at the port in 1974, when bananas from Costa Rica were unloaded box by box. Asked why he was still working at 73, Mr. Jones said, “I like the action, and the money doesn’t hurt.”Workers throughout the economy are worried that technology will eliminate their jobs, but at the ports it threatens one of the few blue-collar jobs that can pay more than $100,000. The United States has done less to automate port operations than countries like China, the Netherlands and Singapore. But the technology is now advancing more quickly, especially on the West Coast.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More