Baltimore port workers join nationwide strike after union contract expires

BALTIMORE, Md. - Port workers in Baltimore joined others around the country when the union representing about 45,000 workers went on strike for the first time in nearly five decades.

Workers began walking picket lines early Tuesday, after a contract between the International Longshoresmen’s Association (ILA) and the United States Maritime Alliance, which represents the ports, expired Tuesday.

ILA is demanding significantly higher wages and a total ban on the automation of cranes, gates, and container-moving trucks. 

The Associated Press reports the union’s opening offer was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises.  

"We are now demanding $5 an hour increase in wages for each of the six years of a new ILA-USMX Master Contract," ILA President Harold Daggett said in an updated press release. "Plus, we want absolute airtight language that there will be no automation or semi-automation, and we are demanding all Container Royalty monies go to the ILA."

READ MORE: Port workers strike turns violent in Baltimore

Outside of the Port of Baltimore on Tuesday, workers chanted and marched throughout Tuesday.

"ILA is here to stay!" workers chanted, as they held signs opposing automation.

Sanjay Jain, an associate professor at GWU’s School of Business, said consumers may not necessarily feel the direct impacts of the strike right now because companies likely prepared for the possibility and adjusted their orders ahead of time. It could become problematic if the strike lasts several weeks Jain said.

"If it goes beyond two weeks, we will start seeing its impact on the economy. That will start translating to higher prices of goods. It’s not that we’ll see shortages. I don’t think we’ll have shortages, because things will get routed through west coast ports but it adds to the cost," he said.

He added that it’s hard to tell exactly how long this strike could last.

READ MORE: Port strike: Dockworkers at East and Gulf Coast ports walk picket lines over wages, automation

"Each negotiation goes differently," he said. "My thought is if it goes beyond two weeks, the administration might step in and order the workers to go back because it’s an essential industry. That’s a possibility. So given that’s a possibility, I imagine both sides know that’s a possibility and that would encourage them to reach a resolution earlier. If workers go back unhappy, that would not work well either for the owners."

This week, the alliance said it had increased its offer to 50% raises over six years and said it would keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options, the Associated Press reports.

In response to the alliance’s wage increase offer, the ILA said it has rejected it.

"It fails to address the demands of our members adequately. They might claim a significant increase, but they conveniently omit that many of our members are operating multi-million-dollar container-handling equipment for a mere $20 an hour," an updated statement reads in part.

West Coast ports remain open, as they operate under a different contract.