Progress is reported between the ports and the dockworkers, while a strike is looming

NEW YORK (AP) — With the strike deadline looming, the union representing 45,000 longshoremen and the group representing East Coast and Gulf Coast ports have exchanged wage offers, leaving a glimmer of hope that an agreement can be reached without major problems reaches. work stoppage.

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

The International Longshoremen’s Association is threatening to strike at 12:01 a.m. Tuesday in a move that could silence ports that handle about half the shiploads entering and leaving the US.

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

“We are hopeful that this will allow us to fully resume collective bargaining on the other outstanding issues in an effort to reach an agreement,” the alliance statement said.

The Alliance said its latest offer would increase wages by almost 50% over the six-year contract, and triple employer contributions to pension plans. The offering would also strengthen health care options and retain current language limiting automation.

The union has demanded a 77% wage increase in six years to tackle inflation. Many of the ILA workers can earn more than $200,000 a year, but the union says they have to work large amounts of overtime to reach that figure.

The two sides had not held formal negotiations since June and a strike appeared imminent. In a statement Monday morning, the union said the ports had rejected their demands for a fair contract and that the alliance appeared to be planning to strike. The alliance has said it is willing to negotiate.

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

If the strike were to continue, companies would be forced to pay shippers for delays, causing some goods to arrive late during the peak holiday season – potentially affect the delivery of anything of toys or artificial Christmas trees, to carscoffee and fruit.

A strike could have an almost immediate impact on the supply of perishable imports such as bananas. The ports that could be affected by the strike handle 3.8 million tons of bananas annually, or 75% of the U.S. supply, the American Farm Bureau Federation said.

Americans could also see higher prices as retailers feel the supply crunch.

“If the strikes continue, they will cause massive delays throughout the supply chain, a ripple effect that will undoubtedly roll into 2025 and cause chaos throughout the industry,” said 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 leading up to the strike have already diverted many shipments westwards, increasing route congestion and pressure on demand. The impact will also be felt internationally – especially in places like Britain, he said, where the US is the largest trading partner.

In addition to higher wages, ILA members want a total ban on the automation of cranes, gates and trucks for moving containers used when loading or unloading cargo.

A strike by ILA workers — which will affect ports from Maine to Texas — would be the union’s first since 1977. Port workers on the West Coast belong to a different union and are not involved in the strike.

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

Just a few weeks before a close presidential electionBiden has indicated that he will not exercise this power. Speaking to reporters on Sunday, Biden said “no” when asked whether he planned to intervene in the potential work stoppage.

A White House official said that at Biden’s direction, the administration has been communicating regularly with the ILA and the alliance to keep negotiations moving forward. The president directed Chief of Staff Jeff Zients and National Economic Council Director Lael Brainard to convene the alliance’s board members Monday afternoon and urge them to resolve the dispute fairly and quickly — in a way that will ensure the success of shipping companies of recent years and contributions explains. of union workers.

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Krisher 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.