US Port Workers Strike Over Automation

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The massive strike by nearly 50,000 members of the International Longshoremen’s Association (ILA) along the East and Gulf Coasts has the potential to become one of America’s most disruptive work stoppages in recent times. The demands of the workers walking the picket lines remain at odds with the contract offer from the United States Maritime Alliance (USMX), which represents the major shipping lines, terminal operators, and port authorities. The primary issues at stake are automation and wages.

Dockworkers are rallying against a growing trend among port operators to increase the number of cranes and driverless trucks, which effectively reduces the need for human workers. The ILA is demanding “airtight” language that the ports won’t introduce automation or semi-automation, while the USMX is offering to keep its current contract language, which the union says is not strong enough. The ILA also wants a $5-an-hour increase in pay for each of the six years of the next contract, or a 77% hike in total.

The USMX said Monday it had increased its offer to more than 50% over the proposed six-year contract. The economic impact of the strike depends on how long it continues.

Workers’ demands amid port automation

A one-week strike would cost the US economy about $2.1 billion, according to an estimate Monday from the Anderson Economic Group. Most of that would be a $1.5 billion loss in the value of goods that couldn’t be delivered on time, such as perishable goods. Transportation companies, including ship lines and ports, would lose $400 million in profits, while striking workers and those temporarily laid off would lose $200 million in wages.

While people are panic-buying toilet paper, the strike at ports won’t have any impact on the supply of these products, as the vast majority of US toilet paper comes from domestic factories. However, if the strike drags on, shortages of perishable items that the US imports, such as bananas, cherries, cocoa, sugar, imported wine, beer, and hard liquor, can be expected. The Biden administration has said it supports workers’ rights, but a prolonged economic stoppage will almost certainly cause higher prices and potential supply chain back-ups weeks before Election Day.

President Joe Biden stated he would not invoke the Taft-Hartley Act, which would force the longshore workers back to work. Vice President Kamala Harris didn’t comment on the strike until Wednesday, saying in a statement that those on the picket lines “play a vital role transporting essential goods across America,” so they “deserve a fair share of these record profits.”

On Wednesday, Biden starkly warned against the “man-made disaster” caused by the ongoing port strike and urged the two sides to come to an agreement to avoid significant economic impacts.


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  • ReviewJournal.”Las Vegans are panic buying toilet paper. Here’s why they shouldn’t”.
  • CBSNews.”How much do dockworkers make? Here are the striking workers’ salaries.”.
  • CNN.”Five things to know as the massive port strike enters its third day”.

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