Officials at the dockworkers’ union will meet next week to discuss walkout plans at ports from Maine to Texas if demands for a 77% wage increase aren’t met.

Efforts to avoid a walkout by dockworkers at some of the nation’s busiest seaports are entering a crucial phase. Union officials, representing 45,000 workers from Maine to Texas, will convene for two days starting Wednesday to discuss wage demands and the possibility of striking on October 1st.

Multiyear

Harold Daggett, head of the union that represents dockworkers at U.S. East and Gulf Coast ports, stated that the International Longshoremen’s Association (ILA) and employers are “at an impasse” over wage negotiations. The current multiyear contract expires on September 30th. Although informal talks have been ongoing, formal negotiations, including contentious issues such as automation on docks, have not yet begun.

The ILA is pushing for a 77% wage increase over six years, significantly more than the 32% increase achieved by dockworkers at West Coast ports last year. Employers have offered about half of what the ILA demands. An East Coast strike, described as a potential “big bottleneck,” could severely affect major ports like New Jersey, Virginia, Savannah, and Houston during the holiday season peak.

Groups like the Retail Industry Leaders Association are urging the Biden administration to step in to broker a deal, while the union prefers minimal interference from the administration. The union has filed paperwork enabling a walkout on October 1st and employer anxieties have led to early shipments, increasing shipping rates and straining shipping networks.

Adding to the logistical issues are disruptions in the Red Sea, with ships being diverted from the Suez Canal, prolonging transit times from Asia to the U.S. and Europe. The resulting cargo pile-ups could take weeks to clear, even after a brief strike.

Unionized dockworkers in the U.S. enjoy well-paying jobs, with starting base pay ranging from $38 to $46 per hour. A strike would not only disrupt cargo flow but would also pose a significant challenge to the Biden administration just weeks before a presidential election.

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