The Toy Association™ is closely monitoring the situation at East Coast and Gulf Coast ports where stalled contract negotiations between dockworkers and their employer are resulting in workers threatening to strike, potentially leading to terminal operation disruptions and port shutdowns.

“The potential strike poses a serious risk to both our industry’s supply chain and the broader U.S. economy,” said Ed Desmond, executive vice president of global government & regulatory affairs at The Toy Association. “We are working closely with various organizations to seek a resolution and mitigate disruptions. Ensuring our members can navigate the upcoming holiday season without supply chain interruptions remains our top priority.”

The labor agreement between the International Longshoremen’s Association (ILA) — which represents 85,000 longshore workers along the East Coast, Gulf Coast, Puerto Rico, Great Lakes, and major U.S. rivers. — and the U.S. Maritime Alliance (USMX) is set to expire on September 30, 2024. The ILA is prepared to strike starting October 1 over issues like wages and automation, which would affect all maritime ports along the East and Gulf coasts, if a new deal is not reached before the current contract expires.

The Toy Association continues to work with other organizations and associations whose members will be impacted should a strike occur. The Association has previously signed a coalition letter to President Biden urging administration involvement in the negotiations to mitigate potential disruptions. Toy Association staff also participated in a coalition call earlier this week regarding the status of the negotiations.

According to the ILA, the union has scheduled two days of marathon meetings on September 4 and 5 in Teaneck, New Jersey to present its final contract demands to the USMX. The union will also focus on preparing locals for potential strike strategies and what to anticipate if a strike begins in early October.

Members of both the Labor and Transportation Committees in Congress are actively looking into the situation.

If a strike occurs and leads to significant economic disruption, the Biden Administration may invoke the Taft-Hartley Act, which provides additional mechanisms for mediating labor disputes that affect commerce. The Act was last invoked by President Bush in 2002 during negotiations between West Coast shipping companies and the International Longshore and Warehouse Union, in response to an employer lockout.

The Toy Association continues to remain active in coalition activities and stay engaged with the situation to keep members updated as negotiations continue.