From the BBC:
“US ports strike causes first
shutdown in 50 years”
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 White House said that President Biden and Vice President
Kamala Harris were monitoring the strike closely. "The President
has directed his team to convey his message directly to both sides that they
need to be at the table and negotiating in good faith - fairly and
quickly." 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 labour 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. Mr
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 labour
issues.
What will the economic impact
be? More than a third of exports and imports could be affected by the
strike, hitting US economic growth to the tune of at least $4.5bn each week of
the strike, according to Grace Zemmer, an associate US economist at Oxford
Economics, though others have estimated the economic hit could be higher. She
said more than 100,000 people could find themselves temporarily out of work as
the impact of the stoppage spreads. "This is really a trigger
event, one that will see dominoes fall over the coming months," said Peter
Sand, chief analyst at ocean freight analytics firm Xeneta, warning that the
stand-off also has the potential push up wider shipping costs. That
would hit consumers and businesses which tend to rely on so-called
"just-in-time" supply chains for goods, he added.
How could this affect the US
election? The stand-off injects uncertainty into the US economy at a
delicate time. The economy has been slower and the unemployment rate is
ticking higher as the US election approaches in six weeks. The strike
risks putting President Biden in a tricky spot. US presidents can
intervene in labour disputes that threaten national security or safety by
imposing an 80-day cooling-off period, forcing workers back on the job while
negotiations continue. In 2002, Republican President George W Bush
intervened to open ports after 11 days of a strike action by dockworkers on the
west coast. The US Chamber of Commerce business group has called on
President Biden to take action. "Americans experienced the pain of
delays and shortages of goods during the pandemic-era supply chain backlogs in
2021. It would be unconscionable to allow a contract dispute to inflict such a
shock to our economy," said Suzanne P. Clark, president and chief
executive of the business group. The ILA's Mr Daggett endorsed Democrat
Biden in 2020, but has been critical of the president more recently, citing
pressure on west coast dockworkers to reach a deal a year ago. He met with
Donald Trump in July. Although any strike chaos is likely to hurt
Democrats, the cost of alienating allies in the labour movement just weeks
before the election would be greater, said William Brucher, a professor of
labor studies and employment relations at Rutgers University. But public
support of strikes could be tested by the dispute, which has been championed by
Mr Daggett, who was acquitted of having links to organised crime in a 2004 case
by federal prosecutors. A related civil suit remains unresolved. Films
such as the 1954 classic On the Waterfront once defined the dockworkers union's
image, but Prof Brucher said he thought that historical memory had largely
faded and many people shared the dockworkers' concerns about cost-of living and
automation. "As much as it could sway public opinion against the
ILA, a strike by ILA members is their decision and I don't think they will be
swayed by public opinion in any meaningful way," he said. "What
is more likely to happen is the pressure of a strike will likely force the
employers back to the table with a much more substantial offer."
^ As of Midnight today 45,000
Workers at 36 Major East Coast Ports from Maine to Texas have gone on strike –
the first time in 47 years.
Not only will it cost the US $5 Billion
Dollars a day, but the price and availability of everything from food to
medicines to electronics to clothes will go up or be hard to get (especially
during the Upcoming Holiday Season.)
This will DIRECTLY affect every
single American regardless of which Coast they live on. ^
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