Dock workers go on a historic strike, halting trade at America’s busiest shipping ports
.jpg)
Check your package ETAs… Nearly 50K dock workers at East and Gulf Coast ports took to the picket line yesterday. Their strike began after the workers’ union rejected a last-minute wage-hike offer by port employers. It’s the first strike by East and Gulf Coast port workers since 1977, and a massive one, too. The stoppage could cost the economy $5B/day and disrupt nearly half of all US imports. Shortages could lead to higher prices for food, toys, clothes, and cars.
Worked up: The union wants a 77% wage hike over six years and stronger benefits, arguing that shipping cos have raked in huge profits.
Executive response: Yesterday, President Biden urged both sides to negotiate and end the strike, but also said he wouldn’t enforce the Taft-Hartley Act to keep port workers on the job.
Wide load: Half of North America’s busiest ports are affected, including the Port of New York and New Jersey — the third largest by cargo volume.
’Twas the strike before Christmas… The stoppage could create a supply-chain nightmare for big retailers like Walmart, Costco, and Home Depot ahead of the holidays. Canadian and West Coast union workers have already said they wouldn’t accept diverted shipments during the strike. Economists say that if the halt continues for more than a few weeks, consumers could see higher prices as the holiday-shopping szn ramps up. Even if the strike is short-lived, clearing the cargo backlog could take weeks (picture: mountains of shipping containers waiting out at sea).
Labor has the wind at its back… Unions like the Teamsters and the United Auto Workers have scored big contract wins after recent negotiations. Experts say dock workers may have even more bargaining power because they’re crucial to global trade. Public support is also picking up: a new Gallup poll suggested that 70% of Americans support labor unions, just 1% shy of the highest approval rating since 1965.