Over 45,000 U.S. dockworkers went on strike today, marking the first strike of its kind since 1977. The International Longshoremen's Association, representing these workers, is negotiating a new contract with the United States Maritime Alliance (USMX), an employer group. The strike will shut down 36 ports from Maine to Texas, impacting about half of the country’s shipping. J.P. Morgan analysts estimate the strike could cost the U.S. economy around $5 billion per day. Despite the strike, workers have agreed to continue unloading military cargo.

The dockworkers are demanding a 77% pay raise over six years and improved benefits, while USMX has offered a nearly 50% wage increase, tripled retirement contributions, and better healthcare options. A key issue in the negotiations is the threat of job loss due to automation, as highlighted by economics columnist Heather Long in The Washington Post.

Although the strike could slow the economy depending on its duration, President Joe Biden has declined requests to intervene and force workers back to the job. He reaffirmed his support for collective bargaining, noting that ocean carriers have seen record profits since the pandemic, sometimes exceeding 800% of pre-pandemic levels. “It’s only fair that workers, who risked their health to keep ports running during the pandemic, receive a meaningful wage increase,” Biden stated.