As strike looms, progress reported in negotiations between Eastern and Gulf ports and dockworkers

NEW YORK — As the strike deadline approaches, the union of 45,000 dockworkers and the group representing East Coast and Gulf ports have exchanged wage offers, raising hopes that a deal can be reached without further ado. major work.

In a statement, the American Maritime Alliance, which represents 36 ports from Maine to Texas, said both sides had abandoned their previous positions. The alliance said it also asked the union to extend the current contract.

The International Longshoremen's Association is threatening a strike at 12:01 a.m. Tuesday, which could silence ports that handle about half of the goods shipped by ships entering and leaving the United States.

A message was left Monday evening seeking comment from the union.

We hope this will allow us to fully resume collective negotiations around the other outstanding issues with the aim of reaching an agreement, the alliance statement said.

The Alliance said its latest offer would increase wages by almost 50% over the life of the six-year contract and triple employer contributions to pension schemes. The package would also strengthen health care options and retain current language that limits automation.

The union demanded wage increases of 77% over six years to help cope with inflation. Many ILA workers can earn more than $200,000 a year, but the union says they must work many overtime hours to reach that figure.

The two sides had not held formal negotiations since June and a strike appeared imminent. In a statement released Monday morning, the union said the ports had rejected its demands for a fair contract and the alliance appeared intent on striking. The alliance said it was ready to negotiate.

A work stoppage would significantly disrupt the country's supply chain, potentially leading to higher prices and delays in goods arriving at households and businesses if it continues for weeks.

If prolonged, the strike would force companies to pay shippers for delays and cause some goods to arrive late during the peak holiday shopping season, which could impact the delivery of everything from toys to artificial Christmas trees, cars, coffee and fruit.

A strike could have an almost immediate impact on the supply of perishable products like bananas, for example. Ports that could be affected by the strike handle 3.8 million tons of bananas each year, or 75% of the nation's supply, according to the American Farm Bureau Federation.

Americans could also face higher prices as retailers feel a supply squeeze.

If the strikes continue, they will cause huge delays in the supply chain, a ripple effect that will undoubtedly continue until 2025 and cause chaos across the sector,” noted Jay Dhokia , founder of supply chain management and logistics company Pro3PL.

Dhokia added that East Coast ports are not the only ones at risk of disruption, as concerns that led to the strike have already diverted many shipments to the West, adding to road congestion and pressure increased demand. The impacts will also be felt internationally, particularly in countries like the United Kingdom, he said, where the United States is its largest trading partner.

In addition to higher wages, ILA members want a complete ban on automation of cranes, gates and container moving trucks used for loading or unloading goods.

A strike by ILA workers that would affect ports from Maine to Texas would be the union's first since 1977. West Coast dockworkers belong to a different union and are not involved in the strike.

If a strike were deemed a danger to the economic health of the United States, President Joe Biden could, under the Taft-Hartley Act of 1947, seek a court order for an 80-day cooling-off period. This would suspend the strike.

With a close presidential election just weeks away, Biden has signaled he will not exercise that power. In an exchange with reporters Sunday, Biden said no when asked if he planned to intervene in a possible work stoppage.

A White House official said that, under Biden's leadership, the administration has been in regular communication with the ILA and the alliance to advance negotiations. The president ordered Chief of Staff Jeff Zients and National Economic Council Director Lael Brainard to convene alliance board members Monday afternoon and urge them to resolve the dispute fairly and expeditiously in a way that takes into account the success of shipping companies in recent years and the contributions of unionized workers.

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Krisher was reported from Detroit. AP writers Mae Anderson in New York, Stephen Groves in Dover, Delaware, Dee-Ann Durbin in Detroit, and Zeke Miller and Josh Boak in Washington contributed to this report.

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