Nearly 50,000 dockworkers along the East and Gulf Coasts initiated a strike as of 12AM on Tuesday, October 1st, 2024. The strike closed all major ports from Maine and all the way down to Texas — including the Port of New York and New Jersey, which is the largest on the East Coast and one of the busiest in the United States. The dockworkers, members of the International Longshoremen’s Association (ILA), were striking for higher pay and more job security. As of Friday, October 4th, the ILA has agreed to end the strike after reaching a tentative agreement on wages — but this is not the end of the negotiations. Read on for more about the strike and what this means for New Jersey residents.
Updates as of October 4th, 2024
The ILA has agreed to suspend its dockworker strike as of Friday, October 4th and return to work at the ports after reaching a tentative agreement on wage increases. Per The New York Times, the United States Maritime Alliance (USMX), a shipping industry group representing terminal operators and ocean carriers, offered to increase wages by 62 percent over the course of a new six-year contract. While this increase is still lower than what the union had asked for, it is higher than the alliance’s original offer.
The dockworkers’ current contract which ended at 12AM on Tuesday, October 1st has been extended until January 15th, 2025 while the ILA and USMX continue negotiations. We’ll keep you updated as more details come out.
About the Strike
About 50,000 dockworkers who are union members of the Northern New Jersey-based International Longshoremen’s Association (ILA) are looking for higher wages and more job security through a strike — which officially started at 12AM on Tuesday, October 1st, 2024 after the workers most recent contract expired, per NorthJersey.com. Currently, union members make a base salary of about $81,000 per year, with some making $200,000 annually with large amounts of overtime, per CBS News.
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The workers are concerned with job security, with some ports moving to automated machines. The ILA is looking for a complete ban on the use of automated cranes, gates, and container-moving trucks in unloading or loading freight so as to protect the workers who currently do those tasks.
The dockworker strike, which happened for the first time since 1977, closed down all major ports from Maine to Texas — including the Port of New York and New Jersey, which is the largest on the East Coast and one of the busiest in the US. A total of 36 ports are affected nationwide.
Per CBS News, this strike comes after failed contract talks between the ILA and the USMX. The dockworkers argue that the companies are not compensating enough to keep up with inflation, while the companies themselves are growing exponentially due to the labor performed by these workers.
Picket lines were erected at the facilities with striking dockworkers earlier this week. Striking dockworkers at the Port of Newark and the Port of Elizabeth stood at several locations outside the ports on early Tuesday morning with signs that read, “Automation hurts families: ILA stands for job protection,” per NorthJersey.com.
President Joe Biden released a statement on Tuesday, October 1st about the negotiations. You can read the full statement here.
How This Affects New Jersey
The Port of New York and New Jersey, which includes the Port of Newark and the Port of Elizabeth, halted all loading and unloading of cargo containers and automobiles when the strike started. These ports move over $270 billion worth of goods each year.
While it was unclear what specific goods this strike would affect, what we did know is that the import and export of fuel, road salt, cement, Belgian block, scrap metal, edible oils, and orange juice would continue, per NorthJersey.com. As for the ships that were heading our way, they had to wait it out in the Atlantic until the ports reopened.
Experts said that the strike could’ve cost the economy up to $5 billion a day, affect holiday shopping for millions of residents nationwide, and dictate whether many small- and medium-sized businesses and farmers turn a profit or lose money this year.
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Now, the strike is set to pick up again in the New Year. We’ll keep readers updated as more details become available about how this will affect us here in New Jersey.
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