A strike of port workers has Americans rushing to their local grocery stores for supplies, including toilet paper, in case the supply chain is affected.
East and Gulf Coast port workers walked off jobs on Tuesday at midnight after negotiations to produce an agreement on a new master contract failed. As reported by Newsweek, International Longshoremen’s Association (ILA) negotiators turned down a nearly 50 percent pay increase offer from the United States Maritime Alliance (USMX).
The workers are on strike, for the first time in nearly 50 years, amid arguments about pay and the automation of American ports.
ILA said it rejected the nearly 50 percent wage increase because it does not “address the demands of our members adequately.”
“They might claim a significant increase, but they conveniently omit that many of our members are operating multi-million-dollar container-handling equipment for a mere $20 an hour. In some states, the minimum wage is already $15. Furthermore, our members endure a grueling six-year wage progression before they can even reach the top wage tier, regardless of how many hours they work or the effort they put in,” ILA said in a statement.
The master contract between the union and USMX expired on September 30, 2024, but it requires starting pay ranges of $20 per hour for dock workers and $39 per hour for six or more years of service.
USMX said it is doing its part “to end the completely avoidable ILA strike.”
“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. We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution,” USMX said in a statement.
ILA said USMX’s offer is late, and the company’s last offer was in February 2023.
“USMX’s claim that they are ready to bargain rings hollow when they waited until the eve of a potential strike to present this offer,” ILA said.
Despite the potential havoc that the strike could wreck on the American economy when it comes to supplies, the United States government said an intervention plan is not in place, and the government will not implement an 80-day cooling off period per the Taft Hartley Act to return workers to the docks amid negotiations.
“We’ve never invoked Taft-Hartley to break a strike and are not considering doing so now. We encourage all parties to remain at the bargaining table and negotiate in good faith,” a Biden administration official told Reuters.
The White House told Newsweek that Biden and Vice President Kamala Harris are “closely monitoring” the strike.
“Senior White House and Administration officials continue to work around the clock to get both sides to continue negotiating toward a resolution. The President and Vice President believe collective bargaining is the best way for both American workers and employers to come to a fair agreement.”
Virginia Gov. Glenn Youngkin issued a statement Tuesday that the strike jeopardizes the livelihoods of countless Americans and cripples supply chains nationwide.
“Every day this strike of port workers along the East and Gulf Coasts continues, the economic impacts intensify, affecting livelihoods, supply chains and prices. The economic fallout from the work stoppage at The Port of Virginia extends well beyond the Commonwealth, as the Port manages approximately $66 billion in essential imports, with nearly 60 percent destined for locations outside of Virginia. As a cornerstone of Virginia’s economy, the Port supports 10 percent of the gross state product and supports employment for over half a million jobs in Virginia,” Youngkin said.
Youngkin encouraged Biden to use the tools at his disposal “to remedy this situation for the Commonwealth of Virginia and the nation, including utilizing provisions of the Taft-Hartley Act. The well-being of Virginia and American workers, as well as the health of our economy, depends on a swift resolution to this strike. A failure to lead will only drive-up prices, disrupt trade and exacerbate the challenges already faced by Virginians and Americans.”
The Port of Virginia impacts more than half a million jobs across the Commonwealth, directly employs more than 450 individuals, including approximately 2,600 longshoreman and around an equal number of truckers and nearly 9,500 jobs supported directly by the port and harbor operations.
Virginia economic impacts of the Port of Virginia include:
• $124.1 billion in output sales;
• $63.0 billion in Virginia gross state product;
• $41.4 billion in Virginia labor income;
• 565,000 full- and part-time jobs; and
• $5.8 billion in state and local taxes and fees.
Virginia has access to consumers with 75 percent of the U.S. population within a two-day drive.
The Virginia Port is able to handle a variety of container exports through nearly 30 international shipping line services with connections to more than 200 countries, and provides global market access for Virginia businesses through easy access to the open sea.
The Port of Virginia handled 14.3 million tons of containerized imports worth an estimated $66 billion.
In Seattle and Portland, Washington, thousands of Boeing machinists on strike since September 13, 2024, found their health insurance revoked by the airline company this week.
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Boeing workers’ strike enters second week (augustafreepress.com)
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Rebecca Barnabi
