Impending port strike threatens economic turmoil as union demands higher wages, automation ban
The International Longshoremen’s Association, a union representing 85,000 dockworkers, is gearing up for strikes at the East Coast and Gulf Coast ports beginning on October 1 if it is unable to secure an agreement with the United States Maritime Alliance by Monday evening.
The union is demanding higher wages and a ban on the automation of cranes, gates, and container-moving trucks that are used to load and unload freight, according to the Associated Press.
‘Prices are going to go to the moon.’
The ILA stated that the USMX has “block[ed] the path toward a settlement on a new Master Contract by refusing ILA’s demands for a fair and decent contract and seems intent on causing a strike at all ports from Maine to Texas beginning in almost 12 hours.”
In a Monday update, ILA wrote, “The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject.”
“ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages,” the union stated.
The impending strike would see 45,000 dockworkers walk off the jobs at 36 ports, which manage approximately half of all goods shipped in and out of the country. A potential prolonged strike could have a massive economic impact.
Jason Fisk, CEO of Los Angeles-based SalSon Logistics, told the New York Post that the work stoppage could cost $3.7 billion per day.
Ted Jenkin, a business consultant and co-founder of Atlanta-based oXYGen Financial, told the Post, “The biggest concern will be if there is any type of prolonged strike and how that could affect the supply of goods and the prices for holiday season.”
“A prolonged strike will absolutely force companies to pay shippers for the delays making goods much more costly and make them arrive late for the high point of the holiday season,” Jenkin noted. “A few days won’t be that significant because big retail chains have been preparing for a strike for months, but a month would be a devastating blow for holiday time.”
The strike, scheduled for 12:01 a.m. Tuesday, is expected to impact goods, including bananas, clothing, furniture, and European beers and cars.
Meanwhile, U.S. shoppers told Fox Business that they are gearing up for the forthcoming strike by stocking up on essential items but noted that increased costs will make purchasing additional needed goods difficult.
“The prices are already so high, I feel, because of the current administration, and I think it’s just going to get worse,” one shopper told the news outlet.
“It’s hard to be able to make ends meet as it is. It’s going to be even worse,” another individual said.
Gristedes and D’Agostino Supermarkets chairman and CEO John Catsimatidis warned that the strike would prompt supermarket prices to “go up higher than ever.”
“Prices are going to go to the moon,” he told Fox Business.
The USMX did not respond to a request for comment from the AP.
Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!
