Thousands of dockworkers have gone on strike along the East and Gulf coasts.
The development will likely cause supply chain issues and massive economic losses.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject”, the ILA said in a statement. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages.”
“In addition, the shippers are gouging their customers that result in increased costs to American consumers,” the statement continued. “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.”
The union demanded a 77% pay raise over six years due to inflation and cost of living.
USMX offered to give the union a 50% pay raise, triple employer contributions to retirement plans, improve options for health care coverage, and maintain current protections for workers against automation, according to The Daily Caller.
Fourteen ports are affected by the strike, including the Port Authority in New Jersey and ports in Boston, Philadelphia, Wilmington, North Carolina, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston.
This is the first ILA strike at these ports since 1977 and could cost the United States nearly $4 billion dollars in one week.
The strike will affect produce beef, pork, eggs, clothing, and furniture.
The union’s president, Harold Daggett, recently said that if a strike were to occur, it would “cripple” the U.S.
“These people today don’t know what a strike is,” he said, adding, “Who’s going to win here in the long run? You’re better off sitting down, let’s get a contract, and let’s move on with this world. And in today’s world, I’ll cripple you.”
“I will cripple you, and you have no idea what that means.”
When asked by CNBC what the Biden administration will do if dockworkers strike for more than a week, Commerce Secretary Gina Raimondo said, “I have not been very focused on that.”