How could port workers looming strike affect the economy? Experts say it might not last long to see

Rosie Nguyen Image
Monday, September 30, 2024
Strike deadline for port works could impact economy. Here's how
Thousands of dock workers could walk off the job on Tuesday if contract negotiations aren't completed, potentially damaging the economy.

HOUSTON, Texas (KTRK) -- Nearly 45,000 dock workers across shipping ports on the East Coast and Gulf Coast could walk off the job on Tuesday, including in Houston, if the U.S. Maritime Alliance (USMX) can't agree on a new contract with the union by the end of Monday.

The International Longshoremans Association, the largest union representing maritime workers, is demanding higher pay and protection against automated technology such as cranes, gates, and trucks.

Tim Sensenig, owner of a company that designs software for the transportation industry, TMSfirst, spoke with ABC13 last week about the impacts that could potentially happen from a strike.

"You're going to potentially see major companies like Exxon and (LyondellBasell), which have ongoing running plants that may have to shut down production because they are daily producing goods out the door," Sensenig said.

RELATED: Potential port workers strike could 'cripple the U.S. economy,' experts say

Economists warn that a weeks-long strike could create supply chain challenges and drive up prices for produce, seafood, pharmaceuticals, electronics, and cars. The East Coast and Gulf Coast ports account for more than half of container imports.

Officials from the Labor Department, Department of Transportation, and White House said they've urged both sides to reach a deal, as a strike could cost around $5 billion a day.

Margaret Kidd, the program director of supply chain and logistics at the University of Houston, said she doesn't anticipate that a strike will last very long.

"I don't think consumers need to worry at this moment. If there's a prolonged strike, you could see shortages of fruits and vegetables. Obviously, the automotive parts sector will be impacted," Kidd said.

In a statement, USMX claimed ILA has refused to come to the bargaining table, claiming that's why it filed an unfair labor practice charge to keep negotiations going.

In its own statement, ILA wrote that USMX filed the charges four days before the end of the contract, calling the alliance poor negotiating partners.

A strike would come just five weeks before Election Day. Neither Vice President Kamala Harris nor former President Donald Trump has commented on the dispute, as both candidates seek support among union workers.

The White House has also cited the increased resiliency of U.S. supply chains since the pandemic. An official told ABC News last week that we are monitoring and assessing the potential impacts of a strike related to port operations.

ABC13 reached out to Port Houston for comment. A spokesperson said they are not involved in negotiations but acknowledged that a strike would impact operations.

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