The dockworkers' strike at ports along the U.S. East Coast and Gulf Coast entered its third day on Thursday, with little sign of progress in negotiations for a new labor contract.
The port closings threaten to impede container traffic, racking up billions of dollars in costs to the economy. The strike has drawn the close attention of President Joe Biden, as labor issues and the economy remain top questions for voters in the fast-approaching presidential election.
Reuters reported Thursday that at least 45 container ships were anchored up outside the strike-hit ports and unable to unload, vs. just three on Sunday. The news agency said that there are still no negotiations scheduled between the 45,000 striking longshoremen and their employers.
A day earlier, the port owners signaled that they were open to new talks. That came after the White House urged U.S. port employers to hike their pay offer and land a deal.
"They made incredible profits, over 800% profit since the pandemic, and the owners are making tens of millions of dollars from this," President Joe Biden told reporters. "It's time for them to sit at the table and get this strike done."
The White House has signaled Biden won't use his authority from the 1947 Taft-Hartley Act to end the strike. On Thursday, Florida Gov. Ron DeSantis said he is mobilizing the Florida National Guard to work around the East Coast port strike.
Dockworkers' Strike Demands: Pay, Automation
The dockworkers' strike centers on two main demands: higher wages and stronger job protections against automation.
On Monday, the United States Maritime Alliance, or USMX, which represents ports and ocean carriers, offered to boost dockworkers' pay by nearly 50%.
But the International Longshoremen's Association, or ILA, a union representing the dockworkers, is demanding a 77% pay raise over six years.
How Much Do Dockworkers Make?
Under the current contract, which lapsed on Monday, dockworkers' pay starts at $20 an hour and tops out at $39 per hour after six years. The ILA demand, if met, would see the top hourly pay rise to $69 over the next six years.
Including overtime, longshoremen can earn more than $200,000 per year. But dockworkers argue that they have to work extremely long hours to make that much money.
Further, union officials argue that steep inflation has whittled dockworkers' pay.
Dockworkers are pushing for "the kind of wages we deserve," ILA President Harold Daggett posted on social media on Tuesday. Daggett has also called for an permanent ban of automated cranes and technologies that he perceives as threatening union jobs.
The dockworkers' strike has also highlighted pay differences between workers on West Coast ports and those on the East Coast. But nearly all the areas where East Coast ports reside have significantly lower costs of living, helping to offset the pay difference.
If longshoremen don't get the pay hike and automation ban, Daggett has threatened to "cripple" the U.S. economy.
U.S. ports are among the least efficient in the world, raising costs on consumers and reducing the size of the economy.
Goldman Sachs estimated a 10-day shutdown could result in a 0.2% hit to gross domestic product (though impacts on jobless claims and October nonfarm payrolls releases may be limited). JPMorgan suggested each day of the strike may require roughly 6 days of recovery time, according to FactSet.
Harold Daggett's Net Worth, Trump Ties
While Daggett's net worth isn't public information, the strike has brought the ILA leader's salary and colorful past under scrutiny.
The 78-year-old union boss — who has worked at the ILA for 57 years and took over as president in 2011 — raked in $728,000 in compensation last year from the union, the New York Post reported.
Daggett drives a Bentley and recently sold a 76-foot yacht, according to the New York Times. He also twice won cases against the U.S. Justice Department over alleged Mafia ties.
The strike also put his connection to presidential candidate Donald Trump under the scanner.
In November, Daggett met with former President Trump in Mar-a-Lago, calling it a "wonderful" and "productive" meeting.
Though the ILA has not endorsed a presidential candidate this year, Daggett has signaled a favorable view of Trump.
"President Trump promised to support the ILA in its opposition to automated terminals in the U.S.," he wrote after the July Trump assassination attempt. "Mr. Trump also listened to my concerns about Federal 'Right To Work' laws, which undermines unions."
