Associated dockers 36 East and Gulf Coast ports went on strike early Tuesday morning amid an impasse in new contract negotiations with a group representing port employers.

The International Longshoremen’s Association (ILA), which represents 45,000 longshoremen, launched its first strike since 1977 after signing a six-year contract with the US Maritime Alliance (USMX), which represents port employersexpired on Monday evening.

Negotiations between the ILA and USMX have so far stalled over the union’s demands for pay raises, compensation and protection against port automation.

The ILA stated that it would exempt cruise ships and military cargo from the strike and would continue to address them to prevent disruptions to travel schedules and national security.

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According to reports, USMX made a new offer to ILA on Monday afternoon, which would include a wage increase of almost 50% compared to the new contract, as well as a tripling employer contributions to retirement plansbetter health care and maintaining automation language in the contract. Sources told FOX Business that the ILA rejected the offer and did not file a countersuit.

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The strike comes after USMX filed a unfair labor complaint with the National Labor Relations Board against the ILA last week, arguing that the group was violating labor laws by refusing to negotiate. The ILA criticized the move as a “publicity stunt” and stated that USMX should file complaints against dock employers for not paying dock workers better wages.

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The strike will affect U.S. seaports from Maine to Texas. Together, these ports serve about half Import from the USA and are also key export hubs for U.S. companies.

This will impact the import of cars and auto parts, agricultural products such as bananas, machinery, steel, furniture, clothing and others. Ports in the East and the Gulf Coast also handles a significant percentage of exported cars and auto parts, pharmaceutical products, beef, pork, poultry, eggs, wood, plastics and other products or commodities.

An analysis by J.P. Morgan estimated that the daily costs of a strike by port workers in the East and Gulf Coast would cost the U.S. economy between $3.8 billion and $4.5 billion a day as activity slowed.

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President Bidenwhose administration tried to facilitate talks between the two sides, said it would not use the federal labor law known as the Taft-Hartley Act to intervene in the strike. Under the law, Biden could take action that would trigger an 80-day “cooling off” period that would allow negotiations to resume once workers return to work.

The U.S. Chamber of Commerce, the largest trade group representing U.S. businesses, in a letter urged Biden to invoke Taft-Hartley to “protect our economy” by avoiding work stoppages.

“Taft-Hartley will allow both sides of the negotiations time to reach agreement on a new labor agreement,” House Speaker Suzanne Clark wrote Monday. “Significant differences remain between USMX and ILA on the new agreement, which cannot be resolved before the expiration of the current agreement.”

FOX Business’ Daniel Hillsdon contributed to this report.

Original article source: Longshoremen strike at East and Gulf Coast ports