Tens of thousands of dockworkers have gone on strike across the US East Coast, shutting down key ocean shipping routes – and raising concerns about shortages and inflation – in the build-up to November’s presidential election.
The shutdown by the International Longshoremen’s Association (ILA) stopped traffic at 36 ports from Maine to Texas starting at midnight on Tuesday.
It is the first port strike of its magnitude in five decades, threatening to inflict billions in losses to the US economy and hamper the flow of goods, such as food and clothing.
The US port workers launched the strike due to a labour dispute with employers’ group United States Maritime Alliance (USMX), after their six-year contract expired.
For their new contract, ILA wants USMX to increase wages by 77 percent over six years and bar any automation, which they believe threatens workers’ jobs.
While USMX offered to raise wages by 50 percent and keep current automation checks in place, ILA said that was not enough, especially in light of the industry’s massive profits during the COVID-19 pandemic, and inflation that has affected how far their previous paycheques went.
The shutdown has put US President Joe Biden and Vice President Kamala Harris in a tough spot.
Neither wants to alienate a powerful union or come across as anti-labour to their progressive base. But they are also wary of any damage to the economy, which voters have cited as their top priority heading into elections.
So far, the White House has indicated it will not step in and directly intervene in the labour stoppage, despite calls from some retailers. On Tuesday, Biden said that “collective bargaining” was the best way for workers to get the pay and benefits “they deserve”. He added that it was time for USMX to negotiate a “fair contract” with the dockworkers.
The US administration’s Supply Chain Disruptions Task Force will also hold daily meetings to tackle any possible supply chain challenges.
