US East Coast port strike looms as union, management trade wage offers
ILA threatens strike, would be first such strike by the union since 1977
Strike could cost the economy an estimated $5 billion a day
Strike disputes include pay, terminal automation project issues
Biden administration urges negotiations
Retailers stock merchandise to avoid holiday disruptions
Recasts with details of port operator offer; updates with statement from alliance, advisory from Houston ship channel
By David Shepardson, Doyinsola Oladipo and Lisa Baertlein
Sept 30 (Reuters) - With U.S. East and Gulf Coast port workers set to strike in less than five hours, a port operator alliance said on Monday it traded new wage offers with the union, raising the outside possibility of a settlement beforea halt tocontainer traffic from Maine to Texas.
The labor contract between the International Longshoremen's Association (ILA) union representing 45,000 port workers and the United States Maritime Alliance (USMX) employer group expires late on Monday, with negotiations at an impasse over pay.
The USMX said in a statement on Monday it had offered to hike wages by nearly 50% and traded new proposals with the union in the last 24 hours and asked for an extension of the current master contract.
"We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement," USMX said.
A strike would cost the U.S. economy roughly $5 billion a day, JP Morgan analysts estimated, as shipments of food, retail goods and other products are disrupted from busy terminals including New York, Baltimore and Houston.
The port strike will go ahead starting at 12:01 a.m. ET on Tuesday, the ILA said on Sunday. The union did not immediately respond to a request for comment.
A source briefed on the matter said USMX made the new offer earlier, to which ILA responded in a statement calling it "an unacceptable wage package that we reject."
If union members do walk off the job, it would be the first coast-wide ILA strike since 1977, affecting ports that handle about half of the nation's ocean shipping.
Marine terminals were closingat 5 p.m. ET (2100 GMT) and nearly 100,000 containers will remain stored at the port until the strike is ended, said Rick Cotton, who heads the Port Authority of New York and New Jersey, on Monday. Another 35 ships are expected to arrive at the port over the next week and they will remain at anchor during the strike.
U.S. Chamber of Commerce President Suzanne Clark urged President Joe Biden to use his authority to prevent a walkout for 80 days saying it "would be unconscionable to allow a contract dispute to inflict such a shock to our economy." Biden said on Sunday he did not plan to intervene.
The White House reiterated onMonday it was not considering using the federal Taft-Hartley Act to halt a strike, which would force workers to go back on the job while negotiations continue.
White House Chief of Staff Jeff Zients and top economic adviser Lael Brainard held a meeting with USMX board members on Monday urging them to resolve the dispute fairly and quickly, a White House official said.
The union has previously said the strike would not impact military cargo shipments or cruise ship traffic.
A strike could stop the flow of everything from food to automobiles at major ports, potentially jeopardizing jobs and stoking inflation weeks ahead of the U.S. presidential election.
New York Governor Kathy Hochul said the strike could impact things like automobile imports but the state expects noimmediate impact on food suppliers or essential goods.
"We're deeply concerned about the impact a strike could have on our supply chains, especially when it comes to critical goods like medical supplies and others," Hochul said.
National Association of Manufacturers CEO Jay Timmons said a strike would throw manufacturing supply chains throughout the U.S. into disarray. "Billions of dollars of goods - from food to vehicles to electronics - rely on access to the East and Gulf Coast ports," Timmons said.
A short strike could have a limited economic impact given many companies have imported extra goods ahead of a possible work stoppage or shifted more shipments to West Coast ports. But a strike that continues for weeks could have serious economic impacts.
"These people today don't know what a strike is," Harold Daggett, the ILA's fiery leader, said in a recent video post. "I'll cripple you. I will cripple you."
For months, Daggett has threatened to shut down the 36 ports covered by his union if employers like container ship operator Maersk MAERSKb.CO and its APM Terminals North America do not deliver significant wage increases and stop terminal automation projects.
The dispute is worrying businesses that rely on ocean shipping to export their wares, or secure crucial imports.
Steve Hughes, CEO of HCS International, which specializes in automotive sourcing and shipping, accused the ILA of "holding the entire country over a barrel."
HIGH STAKES
An ILA strike could wedge labor-friendly U.S. President Joe Biden into a no-win position as Vice President Kamala Harris runs a razor-tight election race against former President Donald Trump.
On Friday, Biden administration officials met with the USMX employer group to directly convey "that they need to be at the table and negotiating in good faith fairly and quickly" – a message it had delivered earlier to the ILA.
The USMX has accused the ILA of refusing to negotiate.
Retailers account for about half of all container shipping volume. Many big retailersrushed in Halloween and Christmas merchandise early to avoid any strike-related disruptions.
Walmart WMT.N, the largest U.S. container shipper, and membership warehouse club operator Costco COST.O say they are doing everything they can to mitigate any impact.
But a lot of shippers do not have that flexibility. Onx Homes CEOAsh Bhardwaj has factories in Florida and imports materials used to build homes in the company's planned communities through the Port of Miami.
Like other shippers in his position, he was resigned to his fate. "Everyone will have the same problem," Bhardwaj said.
Reporting by Lisa Baertlein in Los Angeles, Tim Aeppel in New York and David Shepardson in Washington; Additional reporting by Andrea Shalal in Washington; Editing by Himani Sarkar, Andrea Ricci and Richard Chang
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آخر الأخبار
إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
