why are port workers going on strike
There is less time remaining to avoid a work stoppage at ports along entire East and Gulf Coasts in what could become the strike to the US economy in decades.
Port Workers Strike
The strike which would be the first at these ports since 1977 could stop the movement of goods over the docks of all the cargo ports from Maine to Texas.
This consist of everything from bananas to European been liquor and wine along with furniture household goods.
Longshoreman Strike
Members of International Longshoremen Association are set to go on strike at 12:01 am ET Tuesday at three dozen facilities across 14 port authorities.
The maritime alliance shows the major shipping lines all of which are foreign owned as well as terminal operators and port authorities.
There is some signal that a deal could be reached by deadline set by ILA and US Maritime Alliance.
Union says there are 50,000 members covered by the contract the USMX puts the number of port jobs closer to 25,000 with no enough jobs for all workers in union to work every day.
Depending on length of strike there could be shortage of industrial and consumer goods which could lead to inflation.
What the two sides desire
The USMX claims the union is refusing to negotiate in good faith and says the two sides have not met in person since June.
The management group said
“We remain prepared to bargain at any time but both side must come to table if we are going to reach a deal and there is no indication that the ILA is interested in negotiating at this time”.
The union says it has continued to talk with the USMX not in face to face talks.
It said management knows what it is demanding in order to get a deal done and that any strike will be management error not the union.
It said its demands are reasonable given the level of profits in shipping industry.
Ports going on strike
The USMX has offered upwards of 40% in wage spike over the 6 year contract according to a person with knowledge of talks.
The ILA is reportedly demanding for annual pay hikes that would result in raises totaling 77% through the life of contract with top pay climbing from $39 an hour to $69.
Shipping rates climbed during and after the covid as demand rises.
Industry profit $400 billion from 2020-2023 which is more than the industry had made in past since containerization started in 1957.
Harold Daggett the ILA international president and chief said
“My ILA members are going to accept these insulting offers that are a joke considering the work my ILA longshore workers perform and billion dollar profits the companies make off the backs of their labor”
The Biden administration said it is closely monitoring the talks and has encourage the parties to talk in good spirit to reach an agreement.
Acting Labor Secretary Julie Su Transportation Secretary Peter Buttigieg and Lael Brainard director of the National Economic Council met with rep of the USMX to push for the management group to work towards a deal to avoid the strike.
The ILA was invited to that meeting but declined to attend.
ILA had publicly said it did not desire any federal mediators or Labor Department officials trying to broker a new contract.
Confuse on the sidelines and watching worries are businesses that depend on movement of goods.
over 200 business group forward a letter to White House requesting the biden administration to step in to prevent a strike saying country depends on moving both exports and imports through these ports.
The letter does not clearly tells what actions needs to be taken but it implies President Joe Biden should exercise powers under what is famous as Taft Harley Act which became law in 1947.
President G W Bush applied the act in 2002 to halt an 11 day lockout of union members at West Coast Ports.
Biden said her is not implementing the Taft Harley Act.
No Biden said to media “Because it is collective bargaining and I do not believe in Taft Hartley.
At midnight Tuesday some 45,000 dockworkers at 14 ports across the gulf and east coast could be on picket line.
The two sides in dispute have not met since June.
Its estimated that a strike would cost around $billion a day
Margaret Kidd director of supply chain and logistics at University of Houston.
The ports from Texas to New England are responsible for nearly 35% of all US exports and imports.
The Maritime Alliance says its committed to negotiating but claims the union is not bargaining in good faith.
According to the National Retail Federation
“A one day shutdown takes three to five days to recover from. The longer it goes the worse it gets”.
We have to fight for what we rightfully deserve. Lets get a contract and lets move on with this world. Harold J Daggett ILA president said.
Edison Villacis Port Drivers Association
“We even worked with the Teamsters at one point to unionize, but we could not do it because of the anti trust laws.”
Mark Nieves said
“If they have the power to get more money from the steamship line which they deserve then more power to them.” Mark Nieves said.
