Possible obstacles to commerce and economic activity might come from a US dockworkers strike. Thousands of dockworkers have begun an indefinite strike at several major US ports. International Longshoremen’s Association (ILA) members began a walkout in 14 Atlantic and Gulf coast ports on Tuesday. This walkout, the first in almost 50 years, has raised worries before the presidential election and the shopping season.
President Biden has the authority to suspend the strike for a period of eighty days, even though the White House stated that he had no intention of interfering. After months of stalled contract talks, the agreement ended on Monday. The union and shipping companies are negotiating a six-year master contract that will affect 25,000 port workers who handle containers.
The US Maritime Alliance (USMX), a trade group representing the shipping sector, has proposed a contract modification that would increase compensation by approximately 50%. Officials from the union are demanding large pay raises while expressing concern about job security in the face of automation. USMX has taken the union’s alleged refusal to negotiate into official complaint with labor authorities.
Under the previous agreement, dockworkers received starting wages between $20 and $39 per hour, along with incentives related to the container trade. Union representatives seek five dollars per hour or 10% annual remuneration over six years. They say dock workers should earn a share of shipping company revenues, especially after the epidemic’s financial benefits.
Food and other imports that must be received quickly will probably be the first items impacted by this strike. The ports handle many imports, such as bananas and chocolate, and around 14% of agricultural exports. The strike will also cause difficulties in the tin, tobacco, and apparel industries.
According to experts, if the strike continues, the economic effects might worsen and could hurt US growth by at least $4.5 billion weekly. The US dockworkers strike may result in temporary unemployment for over 100,000 individuals. The economic situation becomes precarious during this impasse just before the elections.
