There was a picketing organized by dockworkers from Maine to Texas around early Tuesday in the dispute regarding wages and considerable automation. If the strike proceeds, it is likely to aggravate inflationary trends and shortages of goods.
According to AP news agency, the current contract of about 45000 members of International Longshoremen’s Association (ILA) expired at midnight. Though there were reports of some positive development as regards the negotiations on Monday, the workers opted for strike.
This is the first time ILA has walkout since 1977 removing the lid of 36 ports of America.
At the Port of Philadelphia, demonstrators picketed a few hours after 12 midnight, chanting that “No work without a fair contract.” A truck drove in begging for job protection bearing the words ‘Automation Hurts Families: ILA Stands For Job Protection.’ About 50 workers at Port Houston held a rally holding up signs that read fair pay is needed and revealing that their employers had cut them off from the required payments.
Prior to the strike, there was an exchange of wage proposals between the ports’ representatives and the ILA on the one hand and the union members on the other. The ILA was the first to say that the raise for workers would be a 77 percent increase over six years to cover and address the prevailing inflation rate and address creeping pay increases. Currently, ILA members receive an average base salary of about $81,000 per year, with a few ILA members paid more than $200,000 in overtime.
In reply, the unions suggested a 50% increase in pay in six years and agreed to uphold the current restrictions on automation as in the previous contract, while the union demands complete eradication of automation. Things remain complicated, and the way out is not clear cut.
The alliance is optimistic that the parties shall not consider these talks as closed. Their proposal involves the increase of the employers’ input to the pensions to three times and the improvement of health care.
On Monday Port of Virginia got ready for the strike and also informed on its site that work stoppages had commenced. It indicated that expiration of the master agreement between the US Maritime Defense and ILA triggered a work stoppage at port of Virginia and other eastern seaboard and gulf ports.
Experts on different aspects of the supply chain have indicated that consumer disruption may not come sooner since goods were stockpiled by retailers earlier on due to the forthcoming festive season. Though, if the strike extends more than a few weeks, it may severely disturb the supply chain, resulting in skyrocketing prices and delays in logistics.
In the absence of an immediate resolution to the strike, travelling time for the goods which would have otherwise arrived in time would increase and the imports of a number of items including bananas would also be affected. According to the American Farm Bureau Federation, the affected ports account for 75 percent of the country’s annual supply of bananas, which stands at 3.8 million metric tons.
Shipments from East Coast ports might also cause the outflow thus blocking East Coast ports. While more freight from the Western part of the country can be moved via the rail, it is not possible to transfer the ”Eastern” freight that is usually moved on the Eastern part USA Western ports.
The home mortgage giant JP Morgan suggests that a closure of East and Gulf Coast ports may bring an economic loss of somewhere between $3.8 billion and $4.5 billion daily for the economy as a wholes, although some of the losses may be made up after some time when normal operations resume.
Given that the strike is happening less than a month to presidential elections, shortages may cause the ballot to change. With the strike session being held near a deadline, retailers and producers hoped a resolution would be made or that President Biden would exercise the Taft-Hartley Act to place an 80 day recovery period.
As to whether Biden would intervene, there was no response as per the recent press briefing. A White House official states, however, that the administration maintains contact on a regular basis with both the ILA and the alliance with the goal of promoting negotiations.
