Dockworkers begin strike, shortages, higher retail prices possible
Oct 1, 2024, 10:31 AM | Updated: 10:31 am
Dockworkers strike in a picket line outside of the Port of Houston Authority on October 01, 2024 in Houston, Texas. Members of the International Longshoreman's Association have begun a nationwide strike, consisting of more than 50,000 workers at ports along the East Coast and Texas. The strike, affecting 36 ports, marks a historic event and is the first by the union since 1977. The strike comes after negotiations between the International Longshoreman's Association and the United States Maritime Alliance failed to reach an agreement on better wages and automation. (Brandon Bell/Getty Images)
(Brandon Bell/Getty Images)
NEW YORK (AP) — U.S. ports from Maine to Texas shut down Tuesday when the union representing about 45,000 dockworkers went on strike for the first time since 1977.
A lengthy shutdown could raise prices on goods around the country. And it could cause shortages and price increases at big and small retailers alike. And it’s all happening as the holiday shopping season — along with a tight presidential election — approaches.
“First and foremost, we can expect delays to market. And those delays depend on really what the commodities are and priorities at the ports and how quickly things move,” said Mark Baxa, president of the Council of Supply Chain Management Professionals.
What are the issues in the dockworkers strike?
The International Longshoremen’s Association is demanding significantly higher wages. They also demand a total ban on the automation of cranes, gates and container-moving trucks that are used in the loading or unloading of freight at 36 U.S. ports. Those ports handle roughly half of the nations’ cargo from ships.
The contract between the ILA and the United States Maritime Alliance, which represents the ports, expired Tuesday. Some progress was reported in talks late Monday, but the union went on strike anyway.
The union’s opening offer was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.
Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.
Please read the complete story by the Associated Press here.
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AP Writers Tom Krisher in Detroit and Stephen Groves in Dover, Delaware, contributed to this report.
