U.S. Dockworkers Poised for Strike Over Automation Dispute
Negotiations between dockworkers and port operators face a January 15 deadline, with automation and job security at the center of the conflict.
- The International Longshoremen’s AssociationU.S. Maritime Alliance (USMX) are negotiating a new contract, with automation as the primary sticking point.
- A tentative agreement reached in October included a 61.5% wage increase over six years but deferred discussions on automation and job security.
- If no agreement is reached by January 15, a strike involving 45,000 dockworkers could halt operations at East and Gulf Coast ports, disrupting supply chains and costing up to $7.5 billion per week.
- President-elect Donald Trump has expressed support for the union’s concerns over automation, but his administration may face pressure to intervene if a strike occurs.
- Businesses are stockpiling goods and rerouting shipments to mitigate potential economic impacts, while shipping companies have introduced surcharges to account for anticipated delays.