A strike by the largest dockworker group in the US could bring the country’s shipping industry to a standstill, several have warned.
The International Longshoremen’s Association (ILA) threatened to strike of the first time since 1977, asking their demands be met by October.
If not, 85,000 workers across 36 ports on the East Coast and Gulf of Mexico will cease work, resulting in about $5billion in losses each day.
The move would also disrupt supply chains that only just recovered from the pandemic, further fueling inflation and the cost of living.
Experts warned of the concept this week, as the deadline rapidly approaches.
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Container ships are seen docked at the Port of New York and New Jersey in May 2021. A strike by the largest dockworker group in the US could bring the country’s shipping industry to a standstill
The International Longshoremen’s Association (ILA) recently threatened to strike of the first time since 1977, asking their demands for higher pay be met by October
The strike would cause ‘a sharp rise in shipping costs, similar to the supply chain disruptions seen during the COVID-19 pandemic,’ prominent economist Peter C. Earle told The Daily Caller.
The senior economist at the American Institute for Economic research went on to compare the prospective price increases to those seen ‘throughout 2021 and 2022,’ when the outbreak ensnared multiple economies.
‘The Cleveland branch of the Federal Reserve alleges that 40 to 60 percent of the increase in prices in the post-pandemic period, particularly in the energy, food, and shipping sectors, were driven by gummed-up supply chains,’ he added.
Inflation seen since continues to disrupt the lives of Americans, even after falling to 3 percent in July.
It has ascended to as high as 9.1 percent under the current administration, which faced criticism for its handling of the recent supply chain crisis.
Secretary of Transportation Pete Buttigieg notably took paternity leave for a span of two months, refusing to attend key meetings at the time.
The decision spurred attacks from the GOP. Despite a flurry of factory closures and sick workers, there was no strike.
Now, after negotiation around worker pay seemingly fell flat this month, the ‘sleeping giant’ that is the ILA that could stall the American economy is set to rear its head, its boss warned last week.
f not, 85,000 workers across 36 ports on the East Coast and Gulf of Mexico will cease work, resulting in about $5billion in losses each day
The move would also disrupt supply chains that only just recovered from the pandemic, further fueling inflation and the cost of living. A vessel is seen loaded with containers at the Georgia Ports Authority’s Port of Savannah Garden City Terminal in Savannah, Georgia
‘A sleeping giant is ready to roar on Tuesday, October 1, 2024, if a new Master Contract Agreement is not in place,’ ILA President Harold J. Daggett said.
‘My members have been preparing for over a year for that possibility of a strike.’
Reports have indicated that Daggett and his colleagues are seeking a 77 percent pay increase over six years – and have already rejected an offer of 40 percent.
On the other side of negotiations is the United States Maritime Alliance (USMX), an organization starts during similar talks decades ago that represents the interests of the carriers, stevedores and port associations with 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 stating so.
Citing its already made offer, the group said that ILA instead ‘continues to strongly signal it has already made the decision to call a strike.
‘[W]e hope the ILA will reopen dialogues and share its current contract demands so we can work together on a new deal, as we have done successfully for nearly 50 years.’
The group went on to list some of the contents of its current offer, which included ‘industry leading wage increases’ and ‘higher starting wages.’
Experts warned of the concept this week, as the deadline rapidly approaches. Pictured, A container ship makes it way toward 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 Master Contract Agreement is not in place,’ ILA President Harold J. Daggett said last week in a statement. ‘My members have been preparing for over a year for that possibility of a strike’
‘Our offer demonstrates a willingness by our Members to reach a new deal before the end of this month,’ the update went on – but after a meeting between both sides in Teaneck, New Jersey, September 5, it appears a resolution might not be reached.
Such a prospect, Earle said Thursday, could spell doom for the US economy.
‘Even a short disruption could have ripple effects that exacerbate the regularly strained holiday season,’ Earle told the Caller four days ahead of the deadline.
‘With inflation still significantly above the Federal Reserve’s target and unemployment rising, consumers could face an expensive holiday period with delayed shipments and higher costs for gifts.
Such a combination of supply chain disruptions and economic pressures could further burden households during one of the busiest shopping seasons of the year.’
Another to speak to the outlet was Competitive Enterprise Institute labor expert Sean Higgins, who said he expects the federal government to now intervene.
“The Biden administration has a record of stepping in and forcing a deal if they feel the broader economy is threatened, especially if it is a supply-chain matter,” Higgins told the website, reminding onlookers of last November’s White House Council on Supply Chain Resilience act, and 2021’s E.O. 14017, which spent millions to strengthen ‘the resilience of, critical supply chains.’
‘Nobody should be surprised therefore if the administration intervenes again,’ warned Higgins.
As of writing, top-scale port workers now earn a base of $39 an hour, which equates to about $81,000 a year. With overtime and other benefits, some can make in excess of $200,000. When asked neither the union nor the ports would discuss pay levels
Biden also signed a bill in December 2022 that blocked an impending rail strike, Higgins pointed out.
The move hit more than 115,000 rail workers with a mandatory contract.
As of writing, top-scale port workers now earn a base of $39 an hour, which equates to about $81,000 a year. With overtime and other benefits, some can make in excess of $200,000.
When asked neither, the union nor the ports would discuss pay levels, as the USMX filed a charge with the National Labor Relations Board (NLRB) Thursday that accused the ILA of unfair labor practices.
The alliance said in a statement Thursday that it filed the charge ‘due to the ILA’s repeated refusal to come to the table and bargain on a new master 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 Thursday, the NLRB said it is investigating the complaint.
It’s unlikely the board would make a decision before the approaching deadline, however, as the NLRB says typically it takes seven to 14 weeks to discern the merits of a charge.