Thousands of dockworkers close US East Coast ports in major strike | Labor rights news

Tens of thousands of dockworkers have gone on strike on the U.S. East Coast, closing major shipping routes and raising concerns about shortages and inflation in the run-up to November's presidential election.

The International Longshore Association (ILA) shutdown halted traffic at 36 ports from Maine to Texas starting at midnight Tuesday.

It is the first port strike of this magnitude in five decades, threatening to inflict billions in losses on the U.S. economy and hamper the flow of goods, such as food and clothing.

US port workers launched the strike over a labor dispute with employer group United States Maritime Alliance (USMX), after their six-year contract expired.

For its new contract, the ILA wants USMX to raise wages by 77 percent over six years and ban all automation, which it says threatens workers' jobs.

Dockworkers at Maher Terminals in Port Newark, New Jersey, on strike October 1 [Bryan R. Smith/AFP]

While the USMX proposed raising wages by 50 percent and maintaining current automation controls, the ILA said that was not enough, especially in light of the massive profits of the industry during the COVID-19 pandemic and inflation that affected how far their previous paychecks went. .

We are prepared to fight as long as necessary, to stay on strike as long as necessary, to win the wages and protections against automation that our ILA members deserve, the ILA president said Tuesday, Harold Daggett, in a press release.

After shipping companies raked in billions during the pandemic, we want them to pay it back, said ILA Philadelphia local president Boise Butler. They will reimburse.

I'm afraid it will be ugly

Although analysts say U.S. consumers are unlikely to feel the effects of the strike immediately, their wallets could suffer if it continues too long.

The worry is that the longer this goes on, the more retail shortages will occur and the more Americans will see prices rise, said Al Jazeera's Kristen Saloomey from New Jersey, where, along with New York, some 100,000 unloaded shipping containers are piled up in ports. .

These are containers that would transport goods that Americans need, Saloomey said.

An aerial view of striking dockworkers outside the Port of Houston Authority in Houston, Texas, October 1. [Brandon Bell/Getty Images via AFP]

Fearing significant losses, companies that send or receive goods by sea are considering other shipping options, such as using the West Coast of the United States for their deliveries. But there is no easy plan B, Erin McLaughlin, senior economist at the Conference Board, a nonprofit business research organization, told the AFP news agency.

Although shippers have already begun diverting some cargo to the West Coast, capacity for these alternative options is limited, McLaughlin said.

West Coast dockworkers are not on strike because they are part of a separate union and have their own contract that they agreed to last year, guaranteeing a significant increase in their wages.

Steve Hughes, CEO of HCS International, which focuses on automotive shipping, told the Reuters news agency that the union strike is holding the entire country in check. I'm really afraid it will be ugly.

Forecaster Oxford Economics predicts that this impasse could drain $4.5 billion to $7.5 billion from the U.S. economy each week.

Will the White House intervene?

The shutdown has put US President Joe Biden and Vice President Kamala Harris in a difficult situation. Neither wants to alienate a powerful union or come across as anti-union to their progressive base. But they are also wary of any damage to the economy, which voters have cited as their top priority heading into the election.

So far, the White House has indicated it will not directly intervene in the work stoppage, despite calls from some retailers. On Tuesday, Biden said collective bargaining is the best way for workers to get the pay and benefits they deserve. He added that it was time for the USMX to negotiate a fair contract with the dockworkers.

The U.S. Administration's Supply Chain Disruptions Task Force will also hold daily meetings to address potential supply chain challenges.

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