Dock workers’ strike along the East Coast could hit economy

Over 45,000 dock workers on the East and Gulf Coasts are getting ready to walk off their jobs next week if an agreement isn’t reached between their union, the International Longshoremen’s Association (ILA), and the United States Maritime Alliance (USMX).

Both sides disagree on important issues, like wages and protection from job losses due to automation. Representatives of the ILA and USMX last met in person in June.

A strike is imminent if the union and the trade organization representing port operators don’t reach a deal by October 1. It would disrupt ports along the East Coast that handle 60% of the US shipping traffic, according to Oxford Economics.

A walk-off would cease all loading and unloading at major ports. Therefore, port authorities are racing to unload as much cargo as possible before the deadline.

Ripple effect
Shipments at these ports include everything, from perishable items like frozen chicken to medicines, electronics and car parts.

JPMorgan estimates that a strike could cost the US economy $5 billion daily, around 6% of the national daily gross domestic product (GDP).

Demands
Longshoremen who started working six years ago and are nearing their expiring contracts earn $39 per hour, an 11% increase since they started working. Over the same period, inflation is up 24%. 

The union demands higher wages. It asks that members receive a $5-per-hour raise each year, while management has proposed a $ 2.50-per-hour annual raise.

Industry groups have asked the Biden administration to help avoid the strike, but it has said it doesn’t plan to force dockworkers back to work under the 1947 Taft-Hartley Act.