(Philadelphia) Thousands of longshoremen working at more than 30 ports in the United States began a strike early Tuesday to protest wages and automation. This means of pressure could reignite inflation and cause shortages of goods if the strike lasts more than a few weeks.
The employment contract between the ports and approximately 45,000 members of the International Longshoremen’s Association expired at midnight last night. Even though progress was made on Monday during negotiations, the union members still chose to walk out.
The strike, which affects 36 ports, is the union’s first since 1977.
Workers began picketing the Port of Philadelphia overnight, marching in circles and chanting, “No work without a fair contract.” »
The union’s local president, Boise Butler, argued that workers are looking for a fair employment contract that does not allow automation of their jobs.
According to him, shipping companies have made billions of dollars during the pandemic by charging high prices.
“Now we want them to pay it back. They will reimburse,” said Mr. Butler.
He added that the union will continue the strike for as long as it takes to get a fair deal.
PHOTO BILLY SCHUERMAN, ASSOCIATED PRESS
Hundreds of longshore workers strike in front of the Virginia International Gateway in Portsmouth, Virginia on January 1er October 2024.
“It’s not something you start just to stop. We are not weak,” he warned, recalling the importance of longshoremen for the national economy.
The American Maritime Alliance, which represents the ports, said Monday evening that the two sides had made progress in wage negotiations, but no agreement could be reached.
Initially, the union was seeking a 77% wage increase over six years, arguing that this increase is necessary in the wake of rising inflation.
On Monday evening, the American Maritime Alliance increased its offer to a 50% increase over six years, pledging to maintain the limits surrounding automation in place in the old collective bargaining agreement.
The union wants a complete ban on automation. It was not clear how far apart the two camps remain in the discussions.
In a statement released early Tuesday, the union announced that it had rejected the employer’s latest proposal because it fell “far from meeting what members are demanding in terms of wages and protections against automation.”
Repercussions
Experts on supply chain issues say consumers won’t see an immediate impact from the strike, since most retailers have stocked up on goods in anticipation of a labor dispute.
But if the strike lasts more than a few weeks, it could significantly disrupt the U.S. supply chain, potentially leading to higher prices and delays in getting goods to households and businesses.
If prolonged, the strike will force companies to pay shippers for delays and cause some goods to arrive late for the peak year-end shopping period.
The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. Ports affected by the strike process 3.8 million tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.
It could also hamper exports from East Coast ports and create traffic jams at West Coast ports, where workers are represented by a different union.
“If the strike continues, it will cause huge delays in the supply chain, a ripple effect that will undoubtedly extend into 2025 and cause chaos across the industry,” noted Jay Dhokia, founder of supply chain management and logistics company Pro3PL.
JP Morgan has estimated that a strike that closes East Coast and Gulf ports could cost the US economy between US$3.8 billion and US$4.5 billion per day, with some of that sum recouped over time. after resuming normal activities.