Strike poised to shut down major US ports

The longshoremen’s strike will shut down ports across much of the United States indefinitely, threatening severe trade and economic disruption ahead of the presidential election and the busy holiday shopping season.

Tens of thousands of members of the International Longshoremen’s Association (ILA) are preparing to strike on Tuesday at 14 major Eastern and Gulf Coast ports, disrupting container shipping from Maine to Texas.

Barring a last-minute intervention, the operation would mark the first closure in nearly 50 years.

President Joe Biden has the authority to suspend the strike for 80 days for further negotiations, but the White House has said he does not plan to take action.

The two sides are vying for a six-year master contract covering about 25,000 port workers These personnel work in container and roll-off operations, according to the United States Maritime Alliance (USMX), which represents shipping lines, port associations and marine terminal operators.

Negotiations have been deadlocked for months, with the parties’ current contract set to expire on Monday.

Union president Harold Daggett has called for a significant increase in member wages while voicing concerns about the threat of automation.

Under the previous contract, starting wages ranged from $20 to $39 an hour, depending on the worker’s experience. Workers also receive other benefits, such as bonuses related to the container trade.

Mr. Daggett indicated The union wants raises of $5 per year during the six-year contract, and he estimated the raises would be about 10 percent per year.

The ILA, which says it represents more than 85,000 people, said workers were being owed unpaid wages as shipping company profits soared during the coronavirus pandemic and inflation hit wages. The group warned it expected wider strikes by its members, including those not directly involved in the dispute, but exact numbers were not yet known.

USMX accused the union of refusing to bargain and filed a complaint with labor regulators asking them to order the union to return to the bargaining table.

Time-sensitive imported goods such as food may be among the first to be affected.

According to the Farm Bureau, these ports handle about 14% of seaborne agricultural exports and more than half of imports, including a large portion of the banana, chocolate and coffee import trade.

Other industries disrupted include tin, tobacco and nicotine, Oxford Economics said. Clothing and footwear companies, as well as European automakers, which ship many of their goods through the Port of Baltimore, will also be hit.

U.S. imports surged in the summer as many companies took steps to rush shipments ahead of the strike.

“I don’t think we’re going to see an immediate, significant economic impact … but over the course of a few weeks, if the strike lasts that long, we’re going to start to see prices go up and some shortages of goods,” he said. Seth Harris, professor at Northeastern University and former White House labor adviser.

Grace Zemmer, deputy U.S. economist at Oxford Economics, said that more than one-third of imports and exports may be affected by the strike, which will cost U.S. economic growth at least $4.5 billion per week during the strike , but others estimate the economic hit could be greater.

She said more than 100,000 people could find themselves temporarily unemployed as the impact of the shutdown spreads.

“This is really a triggering event and there will be dominoes toppling in the coming months,” said Peter Sand, principal analyst at shipping analytics firm Xeneta, warning that the standoff could also push prices higher. Wider shipping costs.

He added that this would hit consumers and businesses who tend to rely on so-called “just-in-time” supply chains for goods.

The confrontation has brought uncertainty to the U.S. economy at a sensitive time.

As the U.S. election approaches in six weeks, economic growth is slowing and unemployment is rising.

The strike could put President Biden in a difficult position.

The President of the United States can intervene in labor disputes that threaten national security or security by imposing an 80-day cooling-off period, forcing workers to return to work while negotiations continue.

In 2002, after an 11-day strike by West Coast longshoremen, Republican President George W. Bush intervened to open the ports.

The U.S. Chamber of Commerce business group has called on President Biden to take action.

“Americans have experienced the pain of shipment delays and shortages during the pandemic-era supply chain backlogs of 2021,” said Suzanne P. Clark, President and Chief Executive Officer. “Allowing contract disputes to do so much harm to our economy The big shock is unjustified,” said the business group executive.

The ILA’s Mr. Daggett endorsed Democrat Joe Biden in 2020 but has been critical of the president recently, citing pressure on West Coast longshoremen to reach a deal a year ago. He met with Donald Trump in July.

William Brucher, a professor of labor studies and employment relations at Rutgers University, said that while any strike disruption could hurt Democrats, the cost of alienating labor movement allies in the weeks before the election would be greater.

But public support for the strike may be tested by the controversy championed by Mr Daggett. who was acquitted One case tried by federal prosecutors in 2004 had ties to organized crime. Related civil litigation remains unresolved.

Films such as the 1954 classic The Longshoremen once defined the image of the dockworkers union, but Professor Blutcher said he believed the historical memory had largely faded and that many people shared the dockworkers’ concerns about the cost of living and automation.

He said: “While this may influence public opinion against the ILA, the ILA members’ decision to strike is theirs and I do not think they will be influenced by public opinion in any meaningful way.”

“What is more likely to happen is that the pressure of the strike may force employers back to the bargaining table with a more substantial offer.”