Port strike begins for thousands of N.Y. and N.J. dockworkers

ELIZABETH, N.J. -- A port strike has tens of thousands of dockworkers off the job and onto the picket line along the East and Gulf coasts , including at the ports of New York and New Jersey.

Billions of dollars in goods come into the ports, and the Port Authority of New York and New Jersey confirms most operations have been shut down.

"Moments ago, the first large-scale eastern dockworker strike in 47 years began at ports from Maine to Texas, including at the Port Authority of New York and New Jersey. In preparation for this moment, New York has been working around the clock to ensure that our grocery stores and medical facilities have the essential products they need," New York Gov. Kathy Hochul said in a statement just after midnight. "It's critical for USMX and the ILA to reach a fair agreement soon that respects workers and ensures a flow of commerce through our ports. In the meantime, we will continue our efforts to minimize disruption for New Yorkers."

Hundreds of workers took to the picket line overnight at Port Elizabeth , and similar scenes played out in Boston and Philadelphia as the strike went into effect at midnight.

Why are port workers on strike?

This is the International Longshoremen's Association's first strike in nearly 50 years , impacting 14 ports from Massachusetts to Texas. Longshoremen are responsible for loading and unloading cargo, and the ports handle almost half of the nation's ships.

Contract negotiations between the ILA and the U.S. Maritime Alliance, which represents shipping and port terminal companies, broke down Monday.

The union representing the dockworkers is demanding a 77% wage increase over six years. It also opposes fully and semi-automated terminals, which it says impact jobs.

The head of the union spoke to reporters early Tuesday morning in New Jersey.

"I am looking for $5 across the board for six years, and I'm going to fight for it, because those greedy companies are making billions of dollars and they don't want to share. That's why we're out here now fighting for a contract," said Harold J. Daggett, ILA president and chief negotiator. "Nobody knew what the longshoremen were. They didn't get respected, but now we will when they find out malls are going to shut down because goods can't come in, car salesmen are going to get laid off, guess what? Everything that comes into this country comes from the containers off these ships."

"We have it where you can get a 30-year mortgage in this country for a first time homebuyer, but what happens when my six-year contract, when that comes to an end, and you say, I got automation taking your job -- where does my mortgage go? I have no job to pay the mortgage," union foreman Wade Foster said. "Now, I've got more people unemployed, which makes the top officials in this country look like they haven't done their job. When they've done their job, it's these people that have failed us."

The U.S. Maritime Alliance said it offered the union a 50% pay increase, and a spokesperson said there is language in the current contract that says there will not be fully automated terminals. The group has filed an unfair labor practice charge to get the other side to the table.

President Joe Biden can intervene and call for an 80-day cooling off period, but he has said he does not want to intervene in a union matter .

What products will be affected?

The contract negotiations have been going on for months and, in anticipation, some goods were moved to West Coast ports, which are not affected by the strikes.

Consumer goods like clothes, shoes, accessories, furniture, cars and some grocery items, like fish, wine and fresh produce, could be the first to be impacted.

On Monday, Hochul said the strike does not mean there will be a shortage of household goods, at least, not any time soon.

"New York is fully prepared," she said. "While we're preparing for the worst -- and that's what we're supposed to do in government, prepare for the worst -- there is also some reassuring news. We don't anticipate shortages of essential goods anytime soon. So, for example, people do not need to rush out to the grocery store and stockpile goods, like they did during the pandemic."

The governor said pharmaceuticals are not expected to be impacted, because most of them are transported by air. The state has stockpiled medical supplies and is prepared to distribute them, if needed.

She also said heating oil, gas and diesel are not expected to be impacted, and municipal waste operations will continue.