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U.S. East Coast Port Workers Go On Strike

Reuters reports that the International Longshoremen’s Association (ILA) port workers union began its first large-scale strike since 1977 on Tuesday. The strike effectively stops the flow of ocean shipping through the East Coast and Gulf Coast of the United States.

The labor conflict in question is between the ILA, which represents 45,000 port workers, and the United States Maritime Alliance (USMX). The USMX is a non-profit employer group that negotiates contracts with unions like the ILA. The USMX made a final offer on Monday ahead of a midnight deadline, but it was rejected by the ILA, which accused it of falling “far short of the demands of its members to ratify a new contract.”

Michael Daggett speaking into a megaphone surrounded by port workers.

Image credit: Michael Nagle / Bloomberg via Getty Images

The grievances of the ILA, led by Harold Daggett, are primarily around pay increases and automation. Daggett said employers haven’t offered satisfactory pay increases and haven’t agreed to stop port automation projects. “Our current offer of a nearly 50 percent wage increase exceeds every other recent union settlement while addressing inflation and recognizing the ILA’s hard work to keep the global economy running,” said the USMX in a statement.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” Daggett said on Tuesday.

Port workers striking.

Image credit: Michael Nagle / Bloomberg via Getty Images

The longer the power workers’ strike persists, the greater its impact will be on the U.S. economy, including the automotive sector. Steve Hughes, CEO of automotive sourcing and shipping firm HCS International, said in a statement that the ILA is “holding the entire country over a barrel” and expressed that he is “really afraid that it is going to be ugly.”

The National Retail Federation has urged the Biden Administration to take action to halt the strike, warning of “devastating consequences” for the American economy. The White House has repeatedly rejected such calls but said it hopes for a short strike and a fair deal for the port workers.

Analysts from JP Morgan warn that the strike will cost the economy as much as $5 billion per day, make inflation worse, and, ultimately, threaten jobs.

George is an automotive journalist with soft spots for classic GM muscle cars, Corvettes, and Geo.

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Comments

  1. Combined with a potential war and an election year, and…poof…there go new vehicle sales into the ether. FINALLY! Bring on the recession and crank up those incentives!

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    1. You’re really a special kind of stupid if you’re hoping and wishing for an economic recession. You have a government pension or something?

      Reply
  2. This will negatively impact Harris, as it should.

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  3. harris is going to lose anyway

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    1. Imagine thinking something outside of a president’s control (whether democrat or republican) will still be blamed for workers wanting better pay and a union to help make that a reality.

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      1. Thank you for a non-partisan, rational, common sense post that doesn’t pander to either side of the aisle. Seriously.

        Unfortunately it will be ignored by the tribal majority. The President is a step above the King of England, the legislative branch is the one we need to worry about but we give them a free pass every time because all our ADHD brains can handle is the one at the “top”.

        Reply
    2. So instead WE lose?

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    3. Vote Team Freedom not Mandy Mandate.

      Reply
  4. Wonder if this will go the way of the railroad strike?

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  5. Biden should step in and order those lazy bastards back to work! If they refuse, fire every damn one of them and replace them. People in the path of Helene have lost everything and are in desperate need of supplies to clean up the damage. Meanwhile the ILA is whining that $200k a year isn’t enough! Disgusting!

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    1. Too bad 45 isn’t there to throw them some paper towels! LOL

      Oh c’mon that was funny, it wasn’t a dig at anyone just something that happened when Puerto Rico got devastated by a hurricane. At least 45 can throw something.

      Reply

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