Massive East Coast Port Strike: Five Things You Should Know

Massive East Coast Port Strike: Five Things You Should Know


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CNN

A massive port strike on the East and Gulf Coasts that began Tuesday has the potential to become one of the most devastating labor stoppages in recent memory in America.

The demands of the nearly 50,000 members of the International Longshoremen’s Association on the picket line continue to conflict with the contract offer from the United States Maritime Alliance (USMX). USMX represents the major shipping companies as well as terminal operators and port authorities.

“If we have to stay out here for a month or two, this world is going to collapse,” ILA President Harold Daggett said in an interview with CNN on Tuesday morning. “Blame them (the USMX). Don’t blame me, blame them.”

The striking workers have raised real concerns about the future of their industry. The strikes, which have halted the flow of a variety of goods at docks at nearly every freight port from Maine to Texas, also come at a crucial time for the U.S. election.

Here’s the latest information you need to know about the port strike.

The strike issues can be summarized in two words: automation and wages.

Port employees do strenuous and important work. Longshoremen are pushing back against a growing trend among port operators to increase the number of cranes and driverless trucks – which require fewer people – to transport goods from container ships.

The dockworkers union is calling for “airtight” wording that ports will not introduce automation “or semi-automation.” The USMX is offering to keep its current contract language, which the union says is not strong enough.

The ILA also wants a pay increase of $5 an hour for each of the six years of the next contract, or a total increase of 77%. USMX announced Monday that it had increased its offer to more than 50% over the proposed six-year contract.

Daggett said Tuesday that the offer results in an average raise of $3 an hour. He said that while the union was considering the Biden administration’s proposal for an average raise of $4 an hour before the strike, the union’s response to USMX with its offer of $3 an hour stood by its demand returned from $5 per hour.

Transportation Secretary Pete Buttigieg told CNN on Thursday that he believes an agreement can be reached to end the strike.

“We engaged the parties from all sides and pushed them to come to the table and reach an agreement,” he said. “We don’t think they’re so far apart economically that they can’t bridge those differences, especially considering it’s a very, very profitable industry.”

As President Joe Biden and Vice President Kamala Harris have done in their recent statements, Buttigieg said it is right for the union to demand its fair share of shipping’s record profits in recent years. He noted that shipping companies have spent billions of dollars on share buybacks to help shareholders and that the market capitalization of these companies has added billions of dollars in value.

“By my rough estimate, that’s a multiple of the total wages of the entire unionized workforce on the East Coast as a whole,” he said.

That depends on how long the strike will last.

However, there are estimates. A week-long strike would cost the U.S. economy about $2.1 billion, according to an estimate from the Anderson Economic Group on Monday.

Most of that would be a loss of $1.5 billion Value of goods that could not be delivered on time, such as perishable goods. Transportation companies, including shipping companies and ports, would lose $400 million in profits, while striking and temporarily laid off workers would lose $200 million in wages.

NO.

People are panic-buying toilet paper, reports on social media show, showing empty store shelves where toilet paper and sometimes paper towels used to be.

Although people probably remember the days of the pandemic shutdown, the port strike will not impact the supply of these products. That’s because the vast majority of U.S. toilet paper comes from domestic factories. When it comes from abroad, it is usually transported by truck or by rail from Canada and Mexico.

If the strike drags on, some shortages of perishable goods that the US imports are expected.

One of them is bananas; The US imports 100% of its supply. According to the American Farm Bureau Federation, more than half of banana imports, America’s most popular fruit by volume, come through the ports affected as of Tuesday morning.

Unlike toilet paper, bananas spoil, so shippers were unable to ship large quantities before strikes.

Other items at risk: cherries, cocoa, sugar, imported wine, beer and liquor.

While the Biden administration has said it supports workers’ rights, a prolonged economic shutdown will almost certainly lead to higher prices and possible supply chain congestion weeks before Election Day.

President Joe Biden has already said he will not invoke the Taft-Hartley Act, which would force longshoremen to return to work.

“No,” Biden told reporters on Sunday when asked whether he would intervene in a possible strike. “Because it’s collective bargaining and I don’t believe in Taft-Hartley.”

Vice President Kamala Harris, the Democratic presidential nominee, only commented on the strike on Wednesday, saying in a statement that the picketers “play a critical role in moving vital supplies across America” ​​and therefore “deserve their fair share.” these record profits.” Industry profits topped $400 billion from 2020 to 2023 as shipping costs skyrocketed during and after the pandemic.

She also criticized former President Donald Trump’s labor policies, claiming he “appointed union busters to the NLRB” and recently said striking workers should be fired.

However, Trump claimed in a statement on Tuesday that the strike occurred “due to the inflation caused by Kamala Harris’ two votes for massive, out-of-control spending,” likely referring to the American Rescue Plan and Inflation Reduction Act.

“American workers should be able to negotiate for better wages,” he continued.

On Wednesday, Biden issued a stark warning about the “man-made catastrophe” caused by the ongoing port strike and urged both sides to reach an agreement to avoid significant economic impacts.

“Natural disasters are incredibly consequential. The last thing we need beyond that is a man-made disaster, what’s going on in the ports,” he told reporters at Joint Base Andrews.

He continued: “We’re already getting resistance – we’re hearing from people in the region – that they’re having difficulty getting the products they need because of the port strike.”

CNN’s Betsy Klein, Allison Morrow, Chris Isidore, Vanessa Yurkevich, Kayla Tausche and Arlette Saenz contributed to this report.