A strike by the largest group of dockworkers in the United States could paralyze the country’s shipping industry, several warned.
The International Longshoremen’s Association (ILA) threatened a strike for the first time since 1977, calling for its demands to be met in October.
Otherwise, 85,000 workers in 36 ports on the East Coast and the Gulf of Mexico will stop working, causing about $5 billion in losses each day.
The move would also disrupt supply chains that were barely recovering from the pandemic, further fueling inflation and the cost of living.
Experts warned about the concept this week, as the deadline quickly approaches.
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Container ships are seen docked in the port of New York and New Jersey in May 2021. A strike by the largest US dockworker group could paralyze the country’s shipping industry.
The International Longshoremen’s Association (ILA) recently threatened a strike for the first time since 1977, calling for its demands for a pay rise to be met in October.
The strike would cause “a sharp increase in shipping costs, similar to the supply chain disruptions seen during the COVID-19 pandemic,” said prominent economist Peter C. Earle. The daily caller.
The chief economist at the American Institute for Economic Research compared the potential price increases to those seen “throughout 2021 and 2022,” when the outbreak ensnared multiple economies.
“The Cleveland branch of the Federal Reserve alleges that between 40 and 60 percent of price increases in the post-pandemic period, particularly in the energy, food and shipping sectors, were driven by supply chains stickers,” he added.
The inflation seen since then continues to disrupt the lives of Americans, even after falling to 3 percent in July.
It has risen to 9.1 percent under the current administration, which faced criticism for its handling of the recent supply chain crisis.
Transportation Secretary Pete Buttigieg took paternity leave for two months and refused to attend key meetings at the time.
The decision sparked attacks from the Republican Party. Despite a wave of factory closures and sick workers, there was no strike.
Now, after negotiations over workers’ pay apparently collapsed this month, the ‘sleeping giant’ that is the ILA, which could cripple the US economy, is ready to raise its head, its boss warned last week.
Otherwise, 85,000 workers in 36 ports on the East Coast and the Gulf of Mexico will stop working, causing approximately $5 billion in losses each day.
The move would also disrupt supply chains that were barely recovering from the pandemic, further fueling inflation and the cost of living. A ship loaded with containers is seen at the Georgia Ports Authority’s Savannah Garden City Port terminal in Savannah, Georgia.
“A sleeping giant is ready to roar on Tuesday, October 1, 2024, if a new framework contract is not signed,” said ILA President Harold J. Daggett.
“My members have been preparing for more than a year for that possibility of a strike.”
Reports indicate that Daggett and his colleagues are seeking a 77 percent pay rise over six years, and have already rejected a 40 percent offer.
On the other side of the negotiations is the United States Maritime Alliance (USMX), an organization started during similar talks decades ago that represents the interests of shippers, longshoremen and port associations before the ILA.
The group said it remains committed to resuming negotiations with the ILA on a new Master Contract, and shared a letter earlier this month indicating as much.
Citing its already-made offer, the group said the ILA “continues to give strong signals that it has already made the decision to call a strike.”
“We hope that the ILA will reopen dialogues and share its current contractual demands so that we can work together on a new agreement, as we have done successfully for almost 50 years.”
The group went on to list some of the contents of its current offer, which included “industry-leading pay increases” and “higher starting salaries.”
Experts warned about the concept this week, as the deadline quickly approaches. In the photo, a container ship heads to the port of New York and New Jersey in June 2021.
“A sleeping giant is ready to roar on Tuesday, October 1, 2024, if a new framework contract is not signed,” ILA President Harold J. Daggett said in a statement last week. ‘My members have been preparing for this possibility of a strike for more than a year’
“Our offer demonstrates the willingness of our members to reach a new agreement before the end of this month,” the update continued, but after a meeting between both sides in Teaneck, New Jersey, on September 5, it seems that perhaps no resolution is reached. reached.
Such a prospect, Earle said Thursday, could spell doom for the U.S. economy.
“Even a brief outage could have ripple effects that exacerbate the regularly tense holiday season,” Earle told the Caller four days before the deadline.
‘With inflation still significantly above the Federal Reserve’s target and unemployment rising, consumers could face a costly holiday period with delayed shipping and higher costs for gifts.
This combination of supply chain disruptions and economic pressures could place an even greater burden on households during one of the busiest shopping seasons of the year.’
Another who spoke to the outlet was Competitive Enterprise Institute labor expert Sean Higgins, who said he hopes the federal government will intervene now.
“The Biden administration has a history of stepping in and forcing a deal if it feels the broader economy is threatened, especially if it’s a supply chain issue,” Higgins told the website, reminding viewers of the Council on White House Supply Chain last November. Resiliency Act and EO 14017 of 2021, which spent millions to strengthen “the resiliency of critical supply chains.”
“Therefore, no one should be surprised if the administration steps in again,” Higgins warned.
At the time of this writing, high-level dockworkers now earn a base of $39 an hour, which is equivalent to about $81,000 a year. With overtime and other benefits, some can earn more than $200,000. When asked, neither the union nor the ports wanted to discuss wage levels.
Biden also signed a bill in December 2022 that blocked an impending rail strike, Higgins noted.
The measure affected more than 115,000 railway workers with a mandatory contract.
At the time of this writing, high-level dockworkers now earn a base of $39 an hour, which is equivalent to about $81,000 a year. With overtime and other benefits, some can earn more than $200,000.
When not asked, neither the union nor the ports discussed wage levels, as the USMX filed a charge with the National Labor Relations Board (NLRB) on Thursday accusing the ILA of unfair labor practices.
The alliance said in a statement Thursday that it filed the complaint “due to the ILA’s repeated refusal to come to the table and negotiate a new framework contract,” as the ports now ask for relief.
Such an order would require the union to resume bargaining, and in an email to the AP on Thursday, the NLRB said it is investigating the complaint.
However, the board is unlikely to make a decision before the approaching deadline, as the NLRB says it typically takes seven to 14 weeks to discern the merits of a charge.