The head of the International Longshoremen’s Association (ILA), Harold Daggett, has vowed that major US ports will remain closed until the union’s pay demands are met.
Tens of thousands of dockworkers on the east and gulf coasts walked out this week, seeking a better labor deal in the first ILA strike since 1977.
Speaking from a picket line in New Jersey, Daggett declared, “We’re going to fight for it and we’re going to win, or this port will never open up again.”
The strike has brought container traffic to a halt across 14 of the country’s busiest ports, including New York, Georgia, and Texas, which handle over a third of US imports and exports.
The resulting disruption is expected to cause delays in goods deliveries and wreak havoc on both global trade and the US economy.
Businesses are bracing for a potentially prolonged shutdown, as calls for government intervention intensify.
So far, President Joe Biden has resisted pressure from major business groups to use federal power to reopen the ports for an 80-day cooling-off period.
Biden emphasized the importance of fair wages for dockworkers, stating, “It’s only fair that workers who risked their lives during the pandemic to keep ports open see a meaningful increase in their wages.”
Donald Trump, a Republican presidential candidate, has also voiced support for the striking workers, highlighting that many shipping companies operate foreign-flagged vessels.
He echoed the sentiment that American workers should be able to negotiate for better pay.
The strike follows stalled negotiations between the ILA and the United States Maritime Alliance (USMX), which represents shipping firms and port associations.
The most recent contract, which expired on Monday, provided base wages of $20 to $39 per hour.
The USMX’s latest proposal offered to boost wages by nearly 50%, increase retirement contributions threefold, and improve healthcare benefits.
However, Daggett dismissed the offer, demanding a $5 hourly pay increase each year and protections against automation.
The economic impact of the strike is already being felt.
Over 100,000 containers are awaiting unloading in the New York area alone, and an additional 35 ships are set to arrive this week.
Shipping delays could lead to price hikes and shortages, affecting both businesses and consumers.
Anne-Sophie Fribourg, a vice president at Zencargo, a freight forwarding company, warned that “the disruption is going to be massive if the strike lasts.”
Similarly, Hamid Moghadam, CEO of Prologis, a major warehouse company, expressed concern, stating, “It’s going to interfere with the proper functioning of the flow of goods.”
For small businesses like Stephenson’s, a 93-year-old clothing store in Indiana, the strike poses significant challenges.
Owner Danny Reynolds revealed that 25% of his inventory is still stuck in transit, with special-order bridal gowns for upcoming weddings at risk of being delayed.
“I think the results to the economy could be devastating if this goes on,” Reynolds said, urging the Biden administration to intervene.
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