The International Longshoreman’s Association (ILA) East Coast port strikes have officially begun, potentially costing the US billions of dollars.
The strike action has officially taken after after rumblings of a potential strike at 36 US ports along the East Coast. The ILA has been demanding increased wages and protections against automation since June. More than 45,000 dock workers have abandoned their posts in protest after the United States Maritime Alliance (USMX) did not meet their demands.
The strike action is the first in more than 50 years. According to the White House, while President Joe Biden has the power to shut down the strike for 80 days, he is choosing not to do so.
What caused the port strikes?
The USMX and the ILA have been in talks since June to renew the contract that expired on September 30th. Both sides have been attempting to negotiate a deal for a six-year contract.
Dock workers on the East Coast make significantly less money per hour than their West Coast counterparts. They are also increasingly worried about their job security as automation finds its way into every piece of machinery they use. In response, the ILA asked for a wage increase to $69 an hour and a complete ban on automated machinery at their ports.
The previous contract also banned automation, but the USMX added automated gates to some ports. The ILA saw that as a breach of the agreement, leading to a sour relationship throughout negotiations over the past few months and even a suspension of the talks.
The White House said in a statement that President Biden and Vice President Kamala Harris are keeping a close eye on the port strikes.
“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 was said.
The USMX stated they increased the wages in their offer by 50 percent, and have tripled the benefits for retirement and health care for the workers. However, the ILA has said it is not enough.
What will be affected by the strikes?
The port strikes could impact imported foods the most. The East Coast ports handle about 15 percent of agricultural imports by sea. The goods likely to be in shortage should the strike drag out are bananas among other kinds of fruit. Chocolate will also be greatly impacted, as much of the trade for it runs through those ports.
Many experts estimate that the strikes could cost about $5 billion per day and could cause more than a hundred thousands jobs to be lost should it drag out. However, they also estimate that the strike action should end in less than two weeks, as anything more could have significant impacts on the US economy.