US dockworkers on the East Coast and Gulf Coast have been on strike since Tuesday. The strike of the century has so far paralyzed about half of the country’s maritime transport and is costing the US economy about $5 billion a day. The strikers are demanding 77 percent more wages – politicians hope for a quick end.
The strike causes unrest in the run-up to the presidential elections. The White House has so far been reluctant to use its powers to end the labor dispute. US Secretary of Transportation Pete Buttigieg also hopes for a quick end through constructive negotiations. From his perspective, employers and employees are “not as far apart as they might think,” Buttigieg said Wednesday.
Buttigieg: Deliver “incredible profits.”
Both sides now need to “come back to the negotiating table, talk it out, come to an agreement and get the ports running again,” Buttigieg said. He also held the shipowners responsible: they had recently made “unbelievable profits” and now had to give up some of them.
On Tuesday, about 45,000 dock workers organized in the International Longshoremen’s Association (ILA) walked off the job after failing to reach a collective agreement with the association of shipowners and port operators USMX.
All ports “from Maine to Texas” were closed
The dock workers’ strike has consequences for foreign trade. JPMorgan analysts estimate that the strike costs the American economy around 5 billion dollars (4.5 billion euros) per day. Deliveries of everything from groceries to electronics are affected. According to the ILA, all ports “from Maine to Texas” have been paralyzed by the labor dispute. How much the strike puts pressure on the US economy and ultimately drives up prices depends crucially on the duration of the strike.
Exports from Europe to the US are becoming more difficult
A week-long strike on the east coast could also have a negative impact on maritime trade with Europe. Goods from Europe would also be affected, making it more difficult to export them to the US.
ILA demands higher wages and protection against automation
It is the union’s first strike since 1977; In addition to significant wage increases, the ILA demands protection of employees against job loss due to the increasing automation of work processes. According to media reports, the union is demanding a 77 percent salary increase over six years.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
