The International Longshoremen’s Association (ILA) is currently leading a labor strike at ports along the Eastern U.S. coast, as well as the Gulf coast.
Whether you deal in trade or buy goods at a grocery store, you might just get a taste of the effects of this strike. Here’s what you need to know:
Reasons and concerns
Since 2020, the shipping industry has banked over $400 billion, yet companies have not raised pay in response to increased inflation and the hard work of its employees. This raises negative sentiments about corporate greed, decreasing the morale of unionized workers at the ports. Not only this, but fear of incoming AI and other automated processes loom over dockworkers, threatening their job stability.
These issues have led to a 24/7 halt in operations until the ILA’s demands are met with a fair agreement. With 50,000 dockworkers in participation across 15 major coastal ports, this strike could lead to major economic issues if gone unresolved. If the strike continues for more than two weeks, it may severely impact the cost of goods, cause shortages and shipping delays, and raise the U.S. inflation rate.
Both online and in-person storefronts may be confronted with the possibility of a change in product shipping speed, cost, and availability. With international trade at stake, this is no small ordeal; not only does this pertain to businesses, but citizens nationwide. A conclusion is vital, and the United States Maritime Alliance is being urged to make a fair agreement by the ILA and the public.
Strike demands
The ILA has made several demands to build a fair contract regarding its workers and plans to continue the round-the-clock strike until their needs are met.
Their main priorities include:
Wage increase: Port workers are fighting for a higher wage, in an increase of $5 an hour each year over the span of six years, for a total 77% salary increase.
Strict language against automation: Over the span of this proposed contract, it is requested that automation not be introduced to the industry.
Royalties on handled containers: Demands also include that any royalties made off of containers go to dockworkers.
In response to these demands, on Monday, September 30th, the United States Maritime Alliance has announced an offer of a 50% pay increase alongside a few limits on automation. However, they are not agreeing to the total ban on automation the union asks for.
This offer was rejected by the ILA in the early hours of Tuesday, October 1st.
Most affected imports and exports
Around 43%-49% of all imports enter the country through these ports. Until port workers and the United States Maritime Alliance can come to a fair agreement, the costs of multiple goods are expected to rise in response to low trade traffic.
A few major products that may be affected by the port strike include:
Alcohol
Auto parts
Bananas
Electronics
Machinery parts
Pharmaceuticals
Seafood
Many additional products typically traded by sea may be affected.
Approaching the holiday season, the hold on imports could lead to delays in shipping and inflated costs on international goods. While larger corporations are able to spend more on shipping and stockpile products, this could easily set small businesses back in sales.
Looking forward
While the union awaits a resolution, dock workers remain on strike and continue to picket for their cause. As workers demand fair wages, better working conditions, and improved benefits, the disruptions highlight the growing power of labor movements in an economy struggling to balance corporate interests with workers' rights. While negotiations are still ongoing, the outcome of these strikes will likely set a precedent for labor relations in the logistics and transportation sectors, potentially reshaping the future of U.S. labor policies and practices.
