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Striking members of the International Longshoremen’s Association returned to work Friday after the union reached a tentative deal with the United States Maritime Alliance.
Even so, the threat of a prolonged dockworkers strike still looms. The ILA has agreed to suspend its strike only until Jan. 15 to provide time to negotiate a new six-year contract with USMX. The negotiations could stall at any moment, and even if a new contract does get inked, the union’s rank and file still has the authority to reject it.
So, if the strike were to resume, how would Louisiana’s economy be impacted?
Jim Patterson, senior vice president of government relations for the Louisiana Association of Business and Industry, tells Daily Report that Louisiana’s status as one of the nation’s leading exporters leaves the state especially vulnerable to a strike of this ilk.
“We’re the third-largest state for exporting goods,” Patterson says. “When you consider the fact that our export industry accounts for about 32 percent of our state’s GDP, you can well understand the significant impact that a dockworkers strike would have on our economy.”
Louisiana’s manufacturing sector would be hit the hardest if the strike were to resume—in 2023, some $53 billion worth of manufactured goods were exported from the state. Agriculture is another area of concern, however, as Louisiana is also a leading exporter of crops like rice, soybeans and sugar.
When it comes to imports, supply chain disruptions could be especially damaging to businesses and industries that rely on perishable goods. Louisiana is a major import hub for goods from Central and South America, including bananas, cocoa and coffee. Companies like Community Coffee could begin feeling pressure within just a week of the strike’s resumption.
“Exactly how long [perishable goods] can keep is not something that you want to be contemplating long term,” Patterson says.
According to Patterson, port closures could impact the livelihoods of not only dockworkers but also those in ancillary industries like logistics and transportation. Louisiana’s trucking and rail industries, for instance, both rely heavily on the smooth functioning of the state’s harbors.
“This could affect hundreds of thousands of jobs across the country,” Patterson says.
Driven by concerns over wages and the threat of automation, some 50,000 dockworkers from Maine to Texas began walking picket lines Tuesday. Patterson says about 700 dockworkers at the Port of New Orleans and about two dozen at the Port of Greater Baton Rouge were on strike before a tentative deal was reached.
A source briefed on that deal said USMX had sweetened its offer of a 50% wage increase over six years to 62%, according to The Associated Press. The ILA had been seeking a 77% pay hike over six years. The deal does not address the union’s concerns over automation.
“We’re delighted that the strike was short-lived this time, but the clock is ticking,” Patterson says. “They’ve got until Jan. 15 to get this sorted.”
