Life has come to a standstill across the once-busy ports extending from Maine to Texas. The shuffle of busy feet and tired hands has been replaced by a silence that suggests that something is not quite right. The reason for the shift is evident—U.S. dockworkers are officially on strike, protesting in favor of their right to better wages. Around 45,000 members of the International Longshoremen’s Association (ILA) are participating in the port workers’ strike after their existing contract expired on Tuesday.
The disruption of business from the port strike is expected to have far-reaching effects if the authorities are unable to reach a consensus and resolve it within a few weeks, so the pressure is on for the port authorities.
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U.S. Dockworkers Go on Strike for Better Wages
The U.S. dockworker’s strike marks the first time the union has gone on strike since 1977. Work is currently being held up at 36 ports, which means a large number of the workers are standing up for their demands this time. These ports are said to handle more than a third of the country’s imports and exports, making them a central hub for the exchange of resources as well as a major pulse point for the fate of the U.S. economy. “We’re going to fight for it and we’re going to win or this port will never open up again,” Harold Daggett, head of the ILA said in a statement. “I’m not playing games here.”
As the strike began, there was pressure on the presidential powers to reopen the port and suspend the strike, but these efforts were unsuccessful. Workers who played an essential role in keeping the economy afloat during the pandemic are now demanding that they be fairly compensated for the work that they do.
For months ahead of the U.S. dockworkers’ strike, talks had been stalled but just as things were kicking off again, the contract expired and the disruptions from the port strike began to take its course.
The dockworkers’ strike is mainly being conducted to win better wages for the workers, who currently see a base hourly wage of $20-$39 USD as well as some other benefits. According to the United States Maritime Alliance (USMX), an entity representing the interests of the ports and shipping firms in this matter, it offered workers a nearly 50% increase in pay, along with triple company contributions to retirement and healthcare.
Despite its claims that the offer was better than “every other recent union settlement,” the U.S. dockworkers continued their strike over wages and automation limitations.
What Do the Port Workers Want From their Employers?
Despite the generous offer made by the USMX, the ILA union is determined to hold out until they feel they are being fairly compensated for the billions of dollars that the companies are making off their labor.
The union is prepared to keep the port shut until the companies agree to boost hourly pay through a 77% increase over the duration of the contract, with a $5 USD for each year of the contract, as well as provide workers with protection against automation. The looming threat of AI and automation puts the workers’ jobs at risk to a worrying degree, and these workers do not want the constant fear of being replaced hovering over them.
In a statement on September 30, the ILA accused these foreign-owned shipping companies of engaging in a ‘Make and Take’ operation where they make billions of dollars on the backs of American ILA longshore workers and take their earnings back out of the country.
“In addition, the shippers are gouging their customers that result in increased costs to American consumers. They are now charging $30,000 for a full container, a whopping increase from $6,000 per container just a few weeks ago. In just a short time, they went from 6K, to 18K, then 24K and now $30,000. It’s unheard of and they are doubling their $30,000 fee stuffing the same container from multiple shippers. They are killing the customers.”
While the U.S. dockworkers’ strike appears to be just as much about the influence of foreign powers as it is about the fight for wages, there is only one way to placate the workers and that is by giving them what they want.
The Port Strike Will Have Lasting Effects on the Economy
The port strike is expected to have significant effects on the economy if it doesn’t wrap up in the next few weeks. A prolonged strike could cause a shortage of goods within the country, causing prices to skyrocket and undo all the progress the economy has made to right itself since the pandemic.
Perishable items such as bananas and cherries cannot be held on the ships waiting to dock. A loss of the stock being held up will add to the shortage and affect the business of the companies sending the goods into the country as well. Losses will mean higher prices for successive batches, such that even after the ports open back up, the prices will remain high for a while at least.
With the holiday season coming up, many imposters and exporters are worried about how their business will be affected if their goods don’t exchange hands in time. Many retailers had attempted to bring in their goods ahead of the strike so some businesses are well-stocked for the upcoming months, but very few of these companies can say they are at ease about the long-term impact of the strike.
From airplane workers to hospitality workers, there have been country-wide protests taking place for worker rights in the U.S. Some have seen small victories while others have made bigger gains, but regardless of the exact demands, these protests show that employees are no longer willing to settle for less than they think they deserve for their roles.
