New York (AFP) – Tens of thousands of workers at major ports on the US East and Gulf Coasts went on strike Tuesday in an action that could drag on the world’s largest economy just ahead of the November presidential election. The shutdown, the first strike by the International Longshoremen’s Association (ILA) in almost 50 years, affects 36 ports from Maine to Texas, impacting an array of goods from food to electronics. About 45,000 workers are on strike, according to the ILA.
In Elizabeth, New Jersey, trucks passing by were honking in support of about 200 striking workers carrying American flags and signs blasting port automation as a job killer. “Profits over people is unacceptable,” one sign read. A possible stoppage had been telegraphed for months, with the odds rising in recent weeks as the September 30 contract deadline loomed. After weeks of stalled talks, the United States Maritime Alliance (USMX), which represents shipping companies and terminal operators, had late Monday expressed greater hope of a deal. But there was no agreement before the midnight deadline.
In preparation for a possible strike, shippers front-loaded some cargo and shifted some containers to West Coast ports. However, analysts caution that a lengthy strike could pose a major headwind to the US economy, leading to shortages of some items and lifting costs at a time when inflation has been moderating. The White House said President Joe Biden and Vice President Kamala Harris are “closely monitoring” the strike, with both briefed on government assessments that “impacts on consumers are expected to be limited at this time,” according to a statement. “The president has directed his team to convey his message directly to both sides that they need to be at the table and negotiating in good faith — fairly and quickly,” it added.
Under the Taft-Hartley Act, Biden has authority to order the parties to resume talks for an 80-day “cooling off” period, with union members going back to work during that time. But Biden has ruled out such a move, citing respect for collective bargaining rights. The National Retail Federation called on Biden to “immediately” restore operations, invoking Taft-Hartley, saying the strike “will have devastating consequences for American workers, their families and local communities.” On the other side of the issue, the Teamsters union issued a statement expressing solidarity with the ILA, adding, “the US government should stay the f**k out of this fight and allow union workers to withhold their labor for the wages and benefits they have earned.”
The first ILA walkout since 1977 follows recent high-profile strikes at US automakers, Boeing, and other employers. The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the Covid-19 pandemic. Media reports say the ILA is asking for a 77 percent wage increase over six years. The last USMX statement said its offer would increase wages by “nearly 50 percent.”
Oxford Economics estimated that the strike would dent US gross domestic product by $4.5 billion to $7.5 billion per week. The overall economic hit depends on the length of the strike, analysts say. Jonita Carter, who has worked as a dockworker for 23 years, said workers are feeling financially pinched by inflation and anxious about automation. “We worked during Covid. We never stopped. We moved the world,” she told AFP. “Easypass took peoples’ jobs. Walmart took peoples’ jobs with self-checkout,” Carter added. “I don’t want that for us.”
Capital Economics said fears about the economic impact of the strike were “overdone,” in part because recent shocks to the supply chain have made businesses more aware of the need to bake in precautionary measures. But Biden would have “little choice” but to take action if the situation worsens, according to the note, “forcing workers to return while negotiations continue.” “There is little chance that the administration would risk jeopardizing its recent economic successes just five weeks before a tightly contested election.”
© 2024 AFP
