Philadelphia port workers could strike in October
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Unionized dockworkers at The Port of Philadelphia and across the East and Gulf coasts are threatening to strike in October.
Why it matters: A strike could potentially interrupt supply chains in the U.S. — alarmingly close to Election Day.
State of play: The drama is playing out on the East Coast with the International Longshoremen's Association (ILA), the largest maritime union in North America.
- Talks are stymied between the union and the U.S. Maritime Alliance, which represents employers including terminal operators and global shipping companies.
What they're saying: At this point, a strike is still unlikely, says Moses Kopmar of Moody's.
- But the union says it won't work past the Sept. 30 expiration of its contract. "[W]e are very far apart, particularly on the economic issues. In fact, we are at an impasse," per a statement from union president Harold Daggett and his son, executive vice president Dennis Daggett, a few days ago.
Meanwhile, companies are already starting to either divert shipments away from the East Coast or, if possible, move up shipments early to avoid any autumn surprises, says Jess Dankert, vice president for supply chain at the Retail Industry Leaders Association.
Between the lines: Observers tell Axios that wages are the big sticking point. East Coast workers want a better deal than the one their peer union on the West Coast negotiated last year.
- Acting Labor Secretary Julie Su ultimately helped hammer out that deal. Observers say the East Coast union doesn't want any help.
- The White House is monitoring the situation but so far letting negotiations play out on their own.
Context: The ILA represents about 85,000 workers across 36 ports.
- The negotiations come at a time of increased turmoil in the shipping industry driven by rising shipping rates and the ongoing crisis in the Red Sea.
Zoom in: Philly's regional port is the 19th busiest in the U.S. in terms of total tonnage and 55th globally for container port performance.
- The port generates around 54,800 jobs across the state and is the largest refrigerated port in the U.S., per the port's website.
The ILA Local 1291 represents hundreds of members working at Philly's port.
Reality check: Even if a strike happens, disruptions won't come close to the crisis at the ports brought on by the pandemic.
What to watch: The union is planning a big meeting early next month to pull together its "final contract demands" and prepare to strike, it said in a statement.