Source: AFP
Tens of thousands of workers at major ports on the US East Coast and in the Gulf went on strike on Tuesday in action that could drag the world’s largest economy down just before November’s presidential election.
The International Longshoremen’s Association (ILA) said the strike was the first “shore-wide strike in nearly 50 years”.
The shutdown would halt shipments at 36 ports, affecting a range of goods from food to electronics and potentially costing the US economy billions of dollars a week.
“We are prepared to fight as long as necessary, to stay out on strike for any period of time necessary, to get the wages and protection against automation that our ILA members deserve,” said Harold Daggett, head of the 85,000-member union. in a statement.
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The strike poses a thorny challenge for the White House and Vice President Kamala Harris’ campaign, as both seek to bolster a pro-union image while averting any economic fallout so close to the election.
President Joe Biden has ruled out federal intervention, but business lobbies are sure to step up calls for action if the strike is delayed.
Biden and Harris are “closely monitoring” the strike, the White House said, with both briefed on the administration’s assessment that “the impact on consumers is expected to be limited at this time.”
“The president asked his team to convey his message directly to both sides that they must be at the table and negotiate in good faith — fairly and quickly,” it added.
The ILA said it “closed all ports from Maine to Texas at 12:01 a.m. of Tuesday” after rejecting a final proposal from shipping group United Maritime Alliance (USMX).
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USMX did not respond to a request for comment.
ILA members began picketing 14 major ports on the East and Gulf coasts immediately after the announcement.
In Boston, longshoremen marched to the port carrying signs that read “no work without a fair contract,” videos shared on social media showed.
A potential break-up had been telegraphed for months, with the odds growing in recent weeks as the two sides described themselves as far apart.
USMX said Monday it was “hopeful” after the two sides exchanged counter offers.
However, there was still no deal when the six-year contract expired at midnight.
Oxford Economics estimated that the strike would reduce US gross domestic product by $4.5 billion to $7.5 billion per week. The total economic hit depends on the length of the strike, analysts say.
Fighting automation
The ILA’s first strike since 1977 follows high-profile strikes at US automakers, Boeing and other employers.
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The contract directly affects approximately 25,000 ILA members in 14 major US ports, including New York/New Jersey, Boston, Philadelphia, Savannah, New Orleans and Houston.
Source: AFP
New York Gov. Kathy Hotchul said Monday that coastguards are trying to clear as many items as possible before the upcoming stop.
Other ports, including New Orleans, Louisiana and Savannah, Georgia, had offered extended hours in the final days before the deadline.
The union is pushing for protection against automation-related job losses and big pay rises after dockers continued to provide essential services throughout the Covid-19 pandemic.
USMX said Monday that its latest offer “would raise wages by nearly 50%, triple employer contributions to employee retirement plans, enhance health care options and maintain the current language around automation and semi-automation’.
Media reports say the ILA is asking for a 77 percent wage increase over six years.
“A port strike would cripple U.S. trade and raise prices at a time when consumers and businesses are beginning to feel relief from inflation,” said Erin McLaughlin, senior economist at the Conference Board, a nonprofit business research organization. .
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“There is no easy Plan B. While shippers have already begun diverting some cargo to the West Coast, capacity for such alternatives is limited.”
Source: AFP
