MJP –
Around 45,000 members of the International Longshoremen’s Association (ILA) began their strike on Tuesday, October 1st.
The ILA is looking for a wage increase for their workers as their contracts expired, meaning that they will need to sign a new contract with the United States Maritime Alliance (USMX). However, as of Monday, the ILA reports that USMX “continues to block the path toward a settlement.”
The strike currently affects 36 ports across the East and Gulf Coast of the United States.
This means that hundreds of thousands of containers across these ports will remain unpacked for the duration of the strike. J.P.
Morgan has estimated that every single strike day would cost the United States around $3.8 billion and $4.5 billion.
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While big companies such as Walmart have made contingency plans in preparation for the port worker strike, smaller companies would likely struggle if the strike lasts longer than expected.
The last ILA strike in 1977 lasted three months and resulted in an 80-cent wage increase.
ILA demands a 77% pay raise for its members over six years – the duration of the new contract – to counter the effects of inflation. USMX countered with a 50% pay raise.
ILA also demands a ban on all automation since it could potentially put some of its members out of work.
