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02-10-2024
HOUSTON: Tens of thousands of dockworkers have gone on strike indefinitely at ports across much of the US, threatening significant trade and economic disruption ahead of the presidential election and the busy holiday shopping season.
Members of the International Longshoremen’s Association (ILA) walked out on Tuesday at 14 major ports along the east and gulf coasts, halting container traffic from Maine to Texas.
The action marks the first such shutdown in almost 50 years.
President Joe Biden has the power to suspend the strike for 80 days for further negotiations, but the White House has said he is not planning to act.
What is the strike about?
Talks have been stalled for months and the current contract between parties expired on Monday.
The two sides are fighting over a six-year master contract that covers about 25,000 port workers employed in container and roll-on/roll-off operations, according to the US Maritime Alliance, known as USMX, which represents shipping firms, port associations and marine terminal operators.
On Monday, USMX said it had increased its offer, which would raise wages by almost 50%, triple employers’ contributions to pension plans and strengthen health care options.
Union boss Harold Daggett has called for significant pay increases for his members, while voicing concerns about threats from automation.
USMX has accused the union of refusing to bargain, filing a complaint with labor regulators that asked them to order the union back to the table.
Under the previous contract, starting wages ranged from $20 to $39 per hour, depending on a worker’s experience. Workers also receive other benefits, such as bonuses connected to container trade.
Daggett has indicated the union wants to see per-hour pay increase by five dollars per year over the life of the six-year deal, which he estimated amounted to about 10% per year.
The ILA said workers are owed after shipping firm profits soared during the COVID pandemic, while inflation hit salaries. It has warned to expect a wider strike of its members, including those not directly involved in this dispute, though the exact numbers are unclear.
The union has said it represents more than 85,000 people; it claimed about 47,000 active members in its annual report to the Labor Department.
What items will be affected by the strike?
Time-sensitive imports, such as food, are likely to be among the goods first impacted.
The ports involved handle about 14% of agricultural exports shipped by sea and more than half of imports, including a significant share of trade in bananas and chocolate, according to the Farm Bureau.
Other sectors exposed to disruption include tin, tobacco and nicotine, Oxford Economics said. Clothing and footwear firms, and European carmakers, which route many of their shipments through the Port of Baltimore, will also take a hit.
Imports in the US surged over the summer, as many businesses took steps to rush shipments ahead of the strike.
“I don’t think we will see immediate, significant economic impacts…but over the course of weeks, if the strike lasts that long, we can begin to see prices rise and for there to be some shortages in goods,” said Seth Harris, a professor at Northeastern University and a former White House adviser on labor issues. (Int’l News Desk)
