Berliner Boersenzeitung - US dockworkers launch mass strike a month before election

The shutdown, the first strike by the International Longshoremen's Association (ILA) in almost 50 years, affects 36 ports from Maine to Texas, impacting an array of goods from food to electronics.

About 45,000 workers are on strike, according to the ILA.

After weeks of stalled talks, the United States Maritime Alliance (USMX), which represents shipping companies and terminal operators, had late Monday expressed greater hope of a deal. But there was no agreement before the midnight deadline.

In Elizabeth, New Jersey, trucks passing by were honking in support of about 200 striking workers carrying American flags and signs blasting port automation as a job killer.

"Profits over people is unacceptable," one sign read.

A possible stoppage had been telegraphed for months, with the odds rising in recent weeks as the September 30 contract deadline loomed.

Analysts caution that a lengthy strike could pose a major headwind to the US economy, leading to shortages of some items and lifting costs at a time when inflation has been moderating.

The White House said President Joe Biden and Vice President Kamala Harris were "closely monitoring" the strike, with both briefed on government assessments that "impacts on consumers are expected to be limited at this time," according to a statement.

Biden urged USMX "to come to the table and present a fair contract to the workers of the ILA," White House spokeswoman Karine Jean-Pierre said Tuesday. "It is time for USMX to negotiate a fair contract with the Longshoremen that reflects the substantial contribution they've been making to our economic comeback."

Under the Taft-Hartley Act, Biden has the authority to order the parties to resume talks for an 80-day "cooling off" period, with union members going back to work during that time.

But Biden has ruled out such a move, citing respect for collective bargaining rights.

The National Retail Federation called on Biden to "immediately" restore operations, including by invoking Taft-Hartley, saying the strike "will have devastating consequences for American workers, their families and local communities."

On the other side of the issue, the Teamsters union issued a statement expressing solidarity with the ILA, saying "the US government should stay the f**k out of this fight and allow union workers to withhold their labor for the wages and benefits they have earned."

- Automation anxiety -

The first ILA walkout since 1977 follows recent high-profile strikes at US automakers, Boeing and other employers.

The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the Covid-19 pandemic.

Media reports say the ILA is asking for a 77-percent wage increase over six years.

USMX on Tuesday defended its latest offer to increase wages by "nearly 50 percent."

"We have demonstrated a commitment to doing our part to end the completely avoidable ILA strike," USMX said. "We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution."

Oxford Economics estimated that the strike would dent US gross domestic product by $4.5 billion to $7.5 billion per week. The overall economic hit depends on the length of the strike, analysts say.

Jonita Carter, who has worked as a dockworker for 23 years, said workers are feeling financially pinched by inflation and anxious about automation.

"We worked during Covid. We never stopped. We moved the world," she told AFP.

"Easypass took peoples' jobs. Walmart took peoples' jobs with self-checkout," Carter added, referring to concerns about automation in the workplace. "I don't want that for us."

Capital Economics said fears about the economic impact of the strike were "overdone," in part because recent shocks to the supply chain have made businesses more aware of the need to bake in precautionary measures.

But Biden would have "little choice" but to take action if the situation worsens, according to the note, "forcing workers to return while negotiations continue."

"There is little chance that the administration would risk jeopardizing its recent economic successes just five weeks before a tightly contested election."

(T.Burkhard--BBZ)