Longshoremen on the East Coast are on the brink of a strike for the first time in 47 years. What you should know

Apologies to Louis Prima, we have bananas today.

But we may not have them next week, as the International Longshoremen’s Association prepares for what could be the first major port strike on the East Coast in nearly half a century, since a strike in 1977 that shut down the United States’ Atlantic ports for seven weeks.

If a deal isn’t signed by the end of Monday, every major U.S. port from Maine to the Texas Gulf Coast could be closed as more than 45,000 union workers picket at ports that handle about half the goods that reach America by sea.

This includes the Port of Wilmington, the largest banana port in North America and the second largest in the world, among East Coast ports, where two-thirds of the bananas imported into the country are stored. Cars, seafood, electronics and holiday items are among other products that could come under pressure in a port strike.

Flashback: Wilmington is the destination for a world of fruits

Port operators blame the union for the standoff and have filed a grievance over what they say was a malicious breakdown in negotiations. The union calls this a “publicity stunt” and says it is both about fair wages and an existential threat to jobs from artificial intelligence and automation.

Here’s what we know about the looming labor strike at the East Coast’s largest ports.

When does the contract period end and how likely is a strike?

The union and port operator group United States Maritime Alliance must reach an agreement by midnight Monday to avoid a strike.

Otherwise, the ILA has declared that it is ready to strike.

Both sides are publicly taking a hard line and it is not clear whether an agreement is in sight. The Maritime Alliance, which represents port operators, filed a complaint with the National Labor Relations Board on Thursday, claiming the union had illegally broken off negotiations.

The two sides have reportedly not met in person since June, after the ILA said it discovered that a port gate in Mobile, Alabama, violated the current ILA agreement by using automated technology to clear trucks without union employees had been used.

But the union publicly ridiculed the claim that they were the ones negotiating in bad faith, calling the port operators’ labor complaint part of a “weak advertising campaign designed to deceive the American public.” Union President Harold Daggett said in September that he accepted “favorable” offers from port operators “several times a week.”

He began warning of a possible strike as early as July.

“As we approach the deadline for our contract, you may hear more about the possibility of a strike,” Daggett’s son, union vice president Dennis Daggett, wrote in a statement in July. “We want you to know that we are doing everything in our power to reach a fair agreement without disrupting the flow of goods you rely on. But honestly, we’re willing to stand up for what’s right, even if it means we have to take drastic measures.”

What do employees demand in a new contract?

Partly the usual: money.

Workers at ports on the East Coast have publicly indicated that they are poorly paid compared to their counterparts on the West Coast, represented by the International Longshore and Warehouse Union. Under the latest contract, longshoremen on the West Coast receive a base salary of nearly $55 an hour, compared to $39 an hour for employees on the East Coast, according to the contract that expires Oct. 1.

Union President Daggett has signaled that his union is seeking a $5 hourly rate increase each year over the six-year contract period.

Unlike the West Coast Longshoremen’s Union, the ILA also opposes automated technologies already in use in West Coast ports. Protective measures against automation that endangers jobs are one of the most important public points of contention in the ILA negotiations with port operators.

“We will never allow automation to take hold of our union and attempt to put us out of work as long as I live,” union President Daggett said in a statement in July.

At the Port of Wilmington, workers from several port unions told the nonprofit news organization Spotlight Delaware that hours and jobs have been cut since port operator Enstructure took over the port in 2023.

How is the Port of Wilmington responding to a potential strike?

Officials at port operator Enstructure did not devote much time to a possible strike in their public report to Delaware’s Diamond State Port Corporation on Friday. Instead, they touted the port’s success in handling more port shipments since taking over port operations in July 2023 — and handling increased ship traffic following the collapse of the Francis Scott Key Bridge in Baltimore this spring.

However, Enstructure has begun preparing for a possible work stoppage, according to spokespeople.

“Over the next few days, Port Wilmington is preparing for a possible work stoppage that could impact major ports on the East and Gulf Coasts beginning Tuesday, October 1,” the company said in a statement. “Port Wilmington will continue business as usual until any possible work stoppage. Should an ILA strike occur, we will continue to provide support services to our customers until regular operations resume.”

What products would be affected by an East Coast port strike?

The ILA has said its workers will continue to handle all military shipping and that cruise ships would also not be affected by a strike. As storm clouds gathered, retailers like Costco also scrambled to speed up deliveries.

However, according to industry observers, a prolonged strike at East Coast ports is likely to drastically affect large swaths of the economy – particularly holiday goods that have not yet arrived on these shores.

“A disruption in the supply chain would undoubtedly lead to across-the-board price increases and impact consumers’ ability to find the toys they want in the coming weeks and months,” Greg Ahearn, president and chief executive of the Toy Association, told USA Today on Friday.

Experts said that in addition to Christmas items, there could also be shortages and higher prices for the following items:

• Seafood such as cod from Iceland or Canada and shrimp from Thailand and Ecuador. “These are not as easy to transport by train because they are refrigerated and perishable,” UCLA professor and supply chain expert Chris Tang told USA Today on Friday.

• Tang said electronic devices such as cell phones and computers now come from Southeast Asian countries such as Vietnam, Indonesia and Thailand instead of China and are transported through ports on the East Coast

• Drug. Although air transport is possible, there could be drug shortages if negotiations cannot be completed within a month or so, Tang said.

• Cars and car parts. The Port of Baltimore, Maryland is the nation’s leader in automobile transportation. European cars come through this port and there could be bottlenecks, experts said. Auto parts from Europe also often pass through ports on the East and Gulf Coasts.

• Machine parts. East Coast ports outperform others in the U.S. in shipping machinery, manufactured steel and precision instruments, according to S&P Global Market Intelligence.

• Bananas. According to Jason Miller of Michigan State University, three-quarters of the country’s bananas come through ports on the East and Gulf Coasts. “There is (zero) chance of all of these imports moving across the West Coast, and the low dollar value per unit weight of bananas means it is not economical to transport them on planes,” he wrote in a LinkedIn post. “In addition, you cannot offer a perishable product in advance.”

Matthew Korfhage is the Delaware region’s business and development reporter, covering all things land and money: openings and closings, construction and the many businesses that call the First State home. Send tips and insults to [email protected].

This article originally appeared in the Delaware News Journal: Port of Wilmington prepares for first strike since 1977