05:59 AM EDT, 10/02/2024 (MT Newswires) -- (Updates with comments from United States Maritime Alliance in the fifth paragraph.)

The International Longshoremen's Association launched a strike Tuesday at all the east coast ports "from Maine to Texas" where its members work after failing to reach a new master contract with the United States Maritime Alliance, which represents shipping companies.

In a statement, the union said it rejected the final proposal made by the USMX on Monday as it "fell far short" of the union's demands for wage increase and protections against automation.

The union, which claims to have 85,000 members, said tens of thousands of its rank-and-file members set up picket lines at waterfront facilities along the Atlantic and Gulf Coasts for their first coastwide strike in nearly 50 years.

"USMX brought on this strike when they decided to hold firm to foreign-owned ocean carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth," Harold Daggett, union president, said.

USMX, in a statement to MT Newswires, called the strike "completely avoidable" and said it supports collective bargaining. "Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA's hard work to keep the global economy running," the industry association said. "We look forward to hearing from the union about how we can return to the table and actually bargain, which is the only way to reach a resolution."

The two sides have been negotiating for a six-year contract, but talks ended at an impasse following a Monday deadline.

The strike blocks all shipments from food to automobiles, with analysts warning that the disruption will cost the economy billions of dollars a day, Reuters reported.