US East Coast Ports Face Possible Dockworkers' Strike

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Facts

  • Dock workers on the East and Gulf Coasts may go on strike on Oct. 1, if the International Longshoremen's Association doesn't approve a new six-year labor contract with the operators of port terminals before Sept. 30. The current contract expires at midnight on Monday.[1][2]
  • In anticipation of a work stoppage — which a JPMorgan transportation analysis estimated would cost the economy $5B a day — many importers have reportedly diverted shipments to West Coast ports or stocked up on goods they'll need later in the year.[1]
  • Talks have been at a stalemate since June between the port operators and the association, which represents around 45K dock workers. The ports in question handle more than half of everything shipped in containers in and out of the US.[3]
  • The association has requested a wage increase of nearly 80% over six years. It also wants tougher language in its contract related to automation, including a ban on using semi-automated equipment and the automation of cranes.[3][4]
  • West Coast longshore workers reportedly earned nearly $220K on average in 2023, while close to 60% of the dockers in the port of New York and New Jersey made $100K to $200K in the 12 months through June 2020.[5][6]
  • Last month, the five largest ports on the East and Gulf Coasts reportedly processed over 24K 40-foot containers of imports and exports worth $2.7B each day. Ports covered by the labor contract handled $37.8B worth of vehicle imports in the 12 months through June 2024.[7][8]

Sources: [1]New York Times, [2]PPAI, [3]Bloomberg, [4]CBS, [5]Guardian, [6]The Economic Times, [7]Reuters.com and [8]Reuters.

Narratives

  • Narrative A, as provided by Progressive Grocer. This is going to be a difficult battle, but it's a necessary one for the dockworkers who are being disadvantaged by current labor laws and exploited by greedy corporations. A strike is the only way to teach the powers that be a lesson. If the Biden administration is as pro-union as it claims, it'll get involved in these negotiations on the dock workers' side.
  • Narrative B, as provided by Politico. Daggett seems intent on taking down the US economy for the sole purpose of achieving personal victory. There's a middle ground to be found, but Daggett appears to have soured on the Biden administration, and — armed with the power to call a strike without a vote — he's determined to make the president look bad regardless of the expense to the country and his workers.

Predictions