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Last week, our media outlet reported on a looming port strike that has the potential to cripple America’s supply chain with just thirty-five days to go before the 2024 presidential election.
As noted, the International Longshoremen’s Association (ILA) – which represents an estimated 45,000 dock workers on the Atlantic and Gulf coasts – is set to go on strike at midnight when their current deal with port managers expires.
The North Bergen, New Jersey-based union made it clear on Monday morning (September 30, 2024) it had no intention of coming back to the bargaining table prior to the deadline – just eleven hours away, as of this writing.
According to the union, the U.S. Maritime Alliance (USMX) “continues to block the path toward a settlement.”
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“The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA longshore workers an unacceptable wage package that we reject,” the union noted. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.”
The union further accused shippers of “gouging their customers (resulting) in increased costs to American consumers.”
As they say in Texas – one of the fourteen states which would be impacted by the work stoppage – “them’s fightin’ words.”
“They are now charging $30,000 for a full container, a whopping increase from $6,000 per container just a few weeks ago,” the statement continued. “In just a short time, they went from 6K, to 18K, then 24K and now $30,000. It’s unheard of and they are doubling their $30,000 fee stuffing the same container from multiple shippers. They are killing the customers.”
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USMX has not posted a statement on the negotiations since last week, when it slammed the union’s “repeated refusal to come to the table and bargain.” It sought an order from the National Labor Relations Board (NLRB) forcing the union “to resume bargaining – so that we can negotiate a deal.”
No such order has been issued – and the administration of U.S. president Joe Biden and vice president Kamala Harris has signaled it would not intervene in the dispute. Biden and Harris are in a difficult position. If they allow a strike to take place, they risk appearing even more inept on economic issues – in addition to inviting potentially debilitating supply chain problems. On the other hand, invoking federal authority to block the strike would cost them dearly amongst blue collar workers they cannot afford to lose in the upcoming election.
While both sides have referred to disagreements over wages and benefits, the real sticking point in these negotiations appears to be a debate over automation. USMX wants to preserve “the existing technology language that created a framework for how to modernize and improve efficiency while protecting jobs and hours,” while the union wants more explicit assurances that gate and crane positions will not be further automated.
“Automation is what’s driving this,” one industry insider told me.
With a strike now appearing inevitable, the only question is how long it lasts…
According to well-placed industry sources, the expectation is for a very brief work stoppage of anywhere from 24-48 hours. However, some are projecting a longer strike – and are predicting it could spread to the west coast in the event it is not nipped in the bud.
However long the strike lasts, it will be costly … with estimates ranging from $5-7 billion for every 24 hours the work stoppage persists.
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ABOUT THE AUTHOR …
Will Folks is the owner and founding editor of FITSNews. Prior to founding his own news outlet, he served as press secretary to the governor of South Carolina, bass guitarist in an alternative rock band and bouncer at a Columbia, S.C. dive bar. He lives in the Midlands region of the state with his wife and eight children.
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