Heavy strike at American ports
Longshoremen on the East Coast of the United States have called for an indefinite strike to protest their working conditions. It would be the first port attack on the East Coast since 1977 and risks causing shock waves that will be felt across the United States economy and presidential elections. The blockade of ports on the East Coast of the United States once again puts pressure on the global supply chain, following the logistics crisis of recent years.
What do they claim? 45,000 longshoremen working in more than 36 ports along the entire East Coast of the United States and the Gulf of Mexico, united under representation by the International Longshoremen’s Association (ILA), demanding a 77% wage increase (equivalent to $5 per We do. per hour over the next six years), according to a statement from the association.
Furthermore, stevedores seek a commitment from port facility operators to stop any automation of loading or unloading operations that could lead to the loss of jobs. ILA President Harold Daggett said, “We are prepared to fight as long as necessary, to remain on strike, to get the wages and protections against automation that our ILA members deserve.” quartz,
What do they offer you? On the other hand, the United States Maritime Alliance (USMX), composed of the shipping industry and port operators, has agreed to maintain the provisions of the existing agreement. It prohibits the automation of port facilities and provides for the prohibition of semi-automatic equipment in future agreements, as published CBS News,
In terms of salaries, USMX is not so flexible and offers salary increases of up to 50% over the next six years, which is well below the expectations of dockers. The port employers’ association is also committed to improving the conditions of contributions to retirement plans and medical insurance of employees.
How much do striking dockworkers make? According to CBS, one reason for the strike is the wage gap between longshoremen on the East Coast and West Coast of the United States. Workers represented by the ILA have a base wage of $39 an hour after six years of work ($20 if less than six years), while their counterparts on the West Coast make $54.85 an hour, rising to $60.85 in 2027 . To give a little context, the minimum wage in the US is $15 an hour.
With a 40-hour workday, a longshoreman on the East Coast would earn $81,000 per year, while a longshoreman on the West Coast would earn $116,000 doing the same work.
What impact will this strike have on the American economy? Grace Zimmer, an economist at financial consultancy Oxford Economics, said on the BBC that the impact of the strike could cost the US economy $4.5 to $7.5 billion per week. fox business Published estimates from consulting firm JPMorgan were far more pessimistic, calculating losses at between $3,800 and $4,500 million per day if the strike was prolonged over time, due to a decline in operations. According to a report by logistics consulting firm MITER, if the strike continues for more than 30 days, New York Port alone is expected to suffer losses of about $640 million per day.
According to the data of BBCThe ports affected by the strike handle about 14% of agricultural exports, more than half of banana and chocolate imports. As reported, overall, this would represent 68% of US containerized exports and approximately 56% of containerized imports. CBS News,
The White House takes a profileThe strike comes at a very delicate moment for political representatives, who face the final weeks before elections. The White House has called on both sides to sit at the negotiating table and resolve the conflict in the shortest possible time.
as he said forbesThe President could use the Taft-Hartley Act, which would allow the strike to be postponed for up to 80 days. However, Biden has preferred not to implement it because “it’s a collective bargaining thing, and I don’t believe in Taft-Hartley.”
Will there be a crisis in the supply chain? The dockworkers’ strike has added to the strain on the supply chain, which is yet to return to normal following disruptions caused by the COVID-19 pandemic. “Congestion and delays at these major ports will have a severe impact on container availability, increasing costs and disrupting schedules,” Christian Roelofs, CEO of Container xChange, said in his LinkedIn profile.
According to a report by logistics consultancy MITER, the port blockade will increase transportation costs due to longer sea and inland routes, which will lead to higher import and export prices of products, as well as delays in the delivery of goods, which will affect retail trade in particular. Is from form. Concerned about the Christmas season.
“Many retailers have already taken steps to mitigate the potential impact of the strike by bringing in or moving products to the West Coast,” said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. CBS News,
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