The U.S. supply chain is in a state of alert over the possibility of strikes by the International Longshoremen’s Association (ILA) at East and Gulf Coast ports after union members voiced their unanimous support for the Oct. 1 strike if a new contract meeting doesn’t materialize their demands.

CNBC reports that the strike would impact 43% of all U.S. imports and billions of dollars in trade monthly.

Harold Daggett, president of the ILA and the union’s chief negotiator, has said he wants a good economic deal for his members, which includes union opposition to port automation and exclusive port contracts.

The main issue in the negotiations between dockworkers and the U.S. Maritime Alliance (USMX) has been automation, which Dagget says is an existential battle for unionized workers. 

USMX has pledged to retain the existing rules on automation in the new six-year contract, which state that “there will be no fully automated terminals and no implementation of semi-automated equipment or technology/automation without agreement by both parties.”

Dagget claims that union workers don't want any form of semi or full automation and that USMX members should have spoken to the unions before investing in new equipment. 

Dagget also demands better wages for his workers, claiming they deserve a slice of shipping lines' billions of dollars in profit. 

The president of the ILA who has been in his position since 2011 said in an interview posted by the ILA YouTube channel that he has been fighting automation for years because it has been taking away jobs from unionized workers in various U.S. industries.

Dagget said his stance is based on protecting jobs, and the families that depend on them, as well as the income taxes that come from those jobs and help build the country. 

"Shipping companies made their most money during Covid when my men had to work on those ports every single day to keep them going. I want to be compensated for that, they know what I want, they know what we want, and if they don't, then I have to go into the streets and fight for what we rightfully deserve," Dagget said. 

The strike will affect key ports including New York/New Jersey, Houston, and Charleston, South Carolina, backing up goods ahead of the holiday season and U.S. presidential elections.

Some cargo is already being diverted to West Coast ports in preparation for the potential strike on October 1.