Potential port workers strike could 'cripple the US economy,' experts say

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Friday, September 27, 2024
Potential maritime worker strike could impact port of Houston
A potential strike from maritime workers in Houston and all around the U.S. has industry experts saying millions of dollars' worth of shipments could be stalled if the union can't agree on a contract by the end of Monday.

HOUSTON, Texas (KTRK) -- Workers at Port Houston could walk off the job soon if their union and the U.S. Maritime Association can't agree on a contract by Monday.

Not only could we see a potential strike from workers here and in other parts of the country, but industry experts say millions of dollars' worth of shipments could be stalled.

The possibility of major supply chain disruption means containers at Port Houston could be left unshipped.

That's if the International Longshoremen's Association (ILA), the largest union representing maritime workers in America, and the U.S. Maritime Association (USMX), don't agree on a new contract that expires on Monday.

Workers could potentially go on strike next Tuesday if a deal isn't made.

"A strike of this magnitude would cripple the U.S. economy," Margaret Kidd, program director of supply chain and logistics at the University of Houston, said.

"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.

The union is demanding higher wages and protections against automation.

Tim Sensenig owns TMSfirst, a company that designs software for the transportation industry.

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

In a statement on Thursday, USMX claims the ILA has refused to come to the bargaining table, and now they've filed an unfair labor practice charge with the National Labor Relations Board, requiring negotiations to keep going.

ILA responded with a statement that reads in part:

"USMX filing these charges four days before the expiration of the current Master Contract clearly illustrates what poor negotiating partners they have been."

Earlier in the week, the union claimed both sides have been in talks multiple times in recent weeks.

Kidd feels that an agreement will be made soon, even if a strike happens.

"There's a trickle-down effect if you close the port for a month or two months. I don't see that happening. I think the impact is so substantive that we'll see federal action," Kidd said.

Port Houston also sent a statement stating that it is not involved in the negotiations and acknowledges that a strike could impact operations.

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