East-Coast Port Strike Imminent
Union workers are planning a massive East Coast port strike on October 1st. If their demands are not met, it could severely damage trade and commerce flowing out of the country.
Dock workers over 40,000 strong threaten to cease operations at 36 ports across the East and Gulf Coast.
This planned strike is the result of months of failing to negotiate a new contract between the union group called the International Longshoremen’s Association (ILA) and the shipping industry group, the United States Maritime Alliance (USMX).
What Is Causing the Strike?
The contract between the USMX and the ILA is set to expire on September 30th at midnight, and negotiations regarding a new agreement have yet to be made. The ILA feels that they are being underpaid and taken advantage of. They are demanding an increase in pay and calling for a total ban on the use of autonomous machinery at the ports. This includes autonomous cranes, gates, and container movements used in the loading or unloading of cargo, as they view it as a threat to the job security of the union workers.
The average hourly wage of an ILA member is $39 per hour after working a consecutive 6 years. This is in stark contrast to their west-coast counterparts, who sit at $54.85 per hour. This adds up to west-coast workers making $116,000 per year. In contrast, an ILA member’s yearly earnings would be $81,000, assuming a 40-hour work-week.
The ILA is asking for a 77% wage increase over 6 years.
The USMX claims it has reached out to the ILA multiple times. However, they say they have not received a response.
Repercussions of an East-Coast Port Strike
The National Association of Manufacturers (NAM) says that these ports trade more than $2.1 billion worth of goods daily. These ports see a massive flow of containerized goods. These include 68% of exports and 56% of imports. In addition to this, 76% of vehicle exports and 54% of vehicle imports pass through these ports as well.
“A strike at this point would have a devastating impact on the economy, especially as inflation is on the downward trend,” according to a statement made by the NAM.
Experts predict that a shutdown could severely raise shipping costs. It could also hinder the flow of goods into the country. This may have a direct impact on the American people and damage the economy.
Government Involvement in the Port Strike
The Biden Administration has been urged by Republican members of the House of Representatives and the House of Transportation and Infrastructure to take action to stop the possibility of a major halt at the ports.
Biden stated that he would not force the ILA members to return to work unwillingly.
69 members of Congress sent a letter to the Biden Administration warning of the expected effects of an East-Coast port strike. They estimate that a 1-week strike would take until mid-November to return to normal operations. They went on to say a 2-week strike could push operations back to 2025.
With the end of the month upon us in a few days, a solution to the situation remains unclear.
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