By The American economy may be hit with a standstill that could crush supply chains and dramatically alter the course of the election.
It would all begin at our nation’s ports, writes The Daily Caller.
Ten of thousands of dockworkers could go on strike on Oct. 1 in a move that experts say could wreak havoc on American supply chains and reignite the rapid inflation seen in the early years of the Biden-Harris administration.
The International Longshoremen’s Association (ILA) — which represents more than 85,000 workers at three dozen U.S. ports along the East Coast and Gulf of Mexico and whose members collectively handle about half of the U.S.’ maritime imports — has threatened to go on strike for the first time since 1977 if their wage and automation protection demands are not met by the United States Maritime Alliance (USMX) — the coalition representing shipping employers. The move could cost the U.S. economy roughly $5 billion a day in trade, and would massively disrupt supply chains in a way not seen since the COVID-19 pandemic, causing rapid inflation and hiking the cost of living for everyday Americans, experts told the Daily Caller News Foundation.
The impending dockworkers strike could result in “a sharp rise in shipping costs, similar to the supply chain disruptions seen during the COVID-19 pandemic, which contributed to price increases throughout 2021 and 2022,” Peter C. Earle, senior economist at the American Institute for Economic research, told the DCNF. “While estimates vary, the Cleveland branch of the Federal Reserve alleges that 40 to 60 percent of the increase in prices in the post-pandemic period, particularly in the energy, food, and shipping sectors, were driven by gummed-up supply chains.”
Inflation skyrocketed in 2021 and 2022 amid COVID-19 supply chain backups caused by emergency factory closures, sick workers and challenges getting goods across borders. The inflation rate, which sat at just 1.4% under former President Donald Trump, peaked at 9.1% in June 2022 and only fell back below 3% in July.
A potential walkout likely involves 25,000 workers, according to The United States Maritime Alliance, a coalition that represents employers in the shipping industry, including major container carriers, terminal operators, and port associations along the U.S. East Coast and Gulf of Mexico.
The ports that could close in a strike handle more than 68 percent of all containerized exports in America and roughly 56 percent of containerized imports.
CBS News reports that “union workers at ports in the East Coast and Gulf Coast earn a base wage of $39 an hour after six years on the job. That is significantly less than their unionized West Coast peers, who make $54.85 an hour — a rate that will increase to $60.85 in 2027, excluding overtime and benefits.
Assuming a 40-hour workweek, West Coast port workers are making more than $116,000 a year, versus $81,000 for their counterparts in the East. The ILA’s initial demands included a 77% wage hike over six-year contract, with the labor group arguing that the increased pay would make up for the surge in U.S. inflation in recent years.
The USMX in August offered what it called an “industry leading” pay hike, but the sides remain far apart.
Yet the differences are not only over pay. To protect job security, the ILA is demanding a complete ban on the automation of cranes, gates and container movements used in the loading or unloading of cargo at the 36 ports.”
The pressure from a strike would certainly fall on the shoulders of Transportation Secretary Pete Buttigieg, who, while doing well in media interviews, has performed poorly at his actual job.
During the supply chain and ports crisis in 2021, Transportation Secretary Pete Buttigieg took paternity leave, a decision that drew criticism as records obtained by watchdog group Protect the Public’s Trust (PPT) revealed he declined key meetings during the period. PPT Director Michael Chamberlain told The Daily Caller, “It may not be a coincidence that so many crises involving the Department, from the supply chain breakdown to the FAA system outage that grounded flights nationwide, have occurred under Buttigieg’s watch.”
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