Strike by dockworkers sparks concerns about potential impacts for NY consumers

Thousands of unionized dockworkers walked off the job Tuesday, halting shipments in New York, New Jersey and dozens of other ports along the Atlantic and Gulf coasts with a labor strike and spiking concerns across various industries about the flow of goods and long-term ramifications for consumers.

At midnight Tuesday, the International Longshoremen’s Association's 45,000 workers across 36 ports from Maine to Texas went on strike — the union’s first since 1977.

The work stoppage shut down import and export operations at those seaports, which handle roughly half of the nation's imports. Locally, it also sparked concerns about potential impacts for New York consumers if the strike continues.

The United States Maritime Alliance, the representative for the dockworkers' employers, was unable to reach a deal with the ILA, which is seeking higher wages and protections against the use of automation. On Monday evening, the alliance released a statement saying the sides had exchanged counter offers on wages at the bargaining table.

“Our offer would increase wages by nearly 50 percent, triple employer contributions to employee retirement plans, strengthen our health care options, and retain the current language around automation and semi-automation,” the Alliance said in a statement.

The union didn't immediately return requests for comment Tuesday.

The Port of New York and New Jersey, the third busiest in the nation, had prepared a work stoppage plan.

On Tuesday, Port Director Bethann Rooney issued an updated plan addressing the work stoppage, alerting all customers and partners that: “Due to the ILA strike, all container and automobile related terminals, depots and rail yards are closed.”

New York Gov. Kathy Hochul said in a statement Monday that the strike is not anticipated to affect the supply of petrochemical goods including home heating oil, gasoline and diesel, as well as municipal solid waste in the Port of New York and New Jersey.

She urged both parties to reach a fair agreement to ensure the continued movement of goods.

On Tuesday, Hochul said in another statement that "New York has been working around the clock to ensure that our grocery stores and medical facilities have the essential products they need."

She added it was "critical" for both sides "to reach a fair agreement soon that respects workers and ensures a flow of commerce through our ports."

Meanwhile, trade experts are keeping a close watch on what an extended standoff could mean for the price and supply of certain perishable items and other goods, with some experts indicating it will take weeks for consumers to feel any impacts while others have said it would take only several days. 

Nelson Eusebio, government relations coordinator at the National Supermarkets Association, which represents 700 supermarkets across the East Coast, said Tuesday that most supermarkets have hedged against the strike by stockpiling on goods. But he said concerns would emerge if the strike continues for longer than a couple weeks.

“If this takes a longer span then things can get a little edgy … because what happens when those products we get from overseas that are no longer around and the inventory get dried then you go back to regular food basics produced in the United States and that puts a strain on the production,” Eusebio said.

“It’s a chain reaction,” said Eusebio, adding that after three weeks of a port being shuttered, prices will start to increase at grocery stories.

Mike Durant, president of the Food Industry Alliance of New York State, Inc., a trade group representing the grocery industry, said while New Yorkers shouldn’t be rushing to stock up on food, there will be some disruption if the strike continues.

“We are focused on fruits and some fresh seafood as the immediate items that could be impacted if this goes on,” he added.

Zach Miller, director of metro region operations at the Trucking Association of New York, said: "We're extremely concerned about the small trucking companies and owner operators who service the ports."

Check back for updates on this developing story.