Dockworkers go on strike at ports on East Coast, including Port of NY and NJ

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Dockworkers at ports from Maine to New Jersey to Texas went on strike Tuesday for the first time since 1977 in a move that some experts say could disrupt the supply chain and billions of dollars worth of products for weeks or more just before the holiday shopping season kicks off.

The North Jersey-based International Longshoremen’s Association walked off the job, seeking a big increase in pay as their last contract expired at 12 a.m. Tuesday. They also oppose automation at the ports, which pose a threat to their jobs.

Striking dockworkers stood at several locations outside the Port of Newark and Port of Elizabeth Tuesday morning with signs that read, “Automation hurts families: ILA stands for job protection.” Occasionally someone would drive by honking and holding up their fist in support.

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Union leadership bounced between locations to address the striking workers. A DJ played music at one spot, and strikers availed themselves of several food trucks parked nearby.

“They’ve made billions and billions of dollars over the last few years through COVID and everything,” Buddy Smith, president of ILA Local 1233, told strikers, referring to the shipping and terminal companies. “We worked. We lost members. We’re just asking the companies to bring us along with them.”

“Automation and going too far with technology, we just can’t afford that,” Smith said. “We’re putting people out of work.”

Leaders at the ILA cut off contract talks in June after learning that a form of automation had been introduced at the Port of Mobile in Alabama, an action they said violated the existing contract.

Last week, the United States Maritime Alliance, or USMX, a group of shipping and port terminal companies also based in North Jersey, filed an unfair labor practice complaint with the National Labor Relations Board over the ILA’s adamancy that it would not resume contract negotiations.

The USMX had issued a statement late Monday saying that over the last 24 hours, they and the union traded counter offers related to wages. The USMX said it increased its offer and also requested an extension of the current contract, since both sides have moved off their previous positions.

Strike hits 36 ports

However, early Tuesday dockworkers were out on strike at 36 ports on the East and Gulf coasts, including the Port of New York and New Jersey, which has key facilities in Newark, Elizabeth and Staten Island.

The dockworkers’ union leaders are seeking significant pay hikes for their members, saying they deserve a fair share of the profits that shipping and port terminal companies have made as cargo volume remains higher after the demand caused by the COVID-19 pandemic. 

The USMX had said its latest offer would increase wages by nearly 50%, triple employer contributions to employee retirement plans, strengthen health care options, and retain the current contract language around automation and semi-automation.

The strike could cost the economy up to $5 billion a day, upend holiday shopping for millions of Americans and dictate whether many small- and medium-sized businesses and farmers turn a profit or lose money this year, experts said.

Ho does strike impact Port of New York and New Jersey?

At the Port of New York and New Jersey, the strike has caused all activity involving loading and unloading cargo containers and automobiles to stop.

Cruise ships will continue to operate despite the strike.

Fuel, such as home heating oil, would not be affected.

Municipal solid waste operations also would not be affected. 

The import and export of road salt, cement, Belgian block, scrap metal, edible oils and orange juice will continue, officials said. 

An estimated 35 ships are expected to enter the port over the next week and would anchor in place, according to Rick Cotton, executive director of the Port Authority of New York and New Jersey. 

Container ships with imports bound for Newark, Elizabeth and Staten Island would end up mooring at designated sites in New York Harbor or off the coast while the strike lasts, or simply slow down, drift and loiter to ride out the strike in the Atlantic, officials said.

President Joe Biden has said he will not invoke the Taft-Hartley Act to block the strike. Instead, White House officials encouraged ongoing discussions despite pleas for help from retail, agriculture, commerce, auto care, toy and other groups for months.

Check back for more on this developing story.

This story contains information from USA Today.