An East and Gulf Coast dockworker strike with significant economic ramifications is looming for 12:01am on Tuesday. While reports have come in that such a strike of tens of thousands of workers is "imminent," the Associated Press and Bloomberg have also reported on potential progress.
On Monday night, Bloomberg noted they viewed a memo from the United States Maritime Alliance (USMX) to its member companies offering to raise wages by almost 50 percent as a way to resume negotiations with the International Longshoremen’s Union (ILU) in a hope to avoid a strike of 45,000 workers.
"Our offer would increase wages by nearly 50%, double employer contributions to employee retirement plans, strengthen health care options and a continuation of the current language on automation and semi-automation," the memo read, per Bloomberg.
However, the report also mentioned that a spokesperson for the workers was not aware of the offer:
A spokesperson for the dockworkers union said he was not aware of any such offer. The ILA has been threatening that its workers would walk out of container ports up and down the US East and Gulf coasts if no deal is reached before their current contract expires at 12:01 a.m. in New York.
Negotiations have been at an impasse since June when the union called things off and have remained far apart on wages and automation.
The AP's headline went for a sense of cautious optimism about the strike, "With strike looming, progress is reported in talks between Eastern and Gulf ports and dockworkers."
As that report mentioned:
NEW YORK (AP) — With a strike deadline looming, the union for 45,000 dockworkers and the group representing East and Gulf Coast ports have exchanged wage offers, leaving a ray of hope that a deal can be reached without a major work stoppage.
In a statement, the U.S. Maritime Alliance, which represents 36 ports from Maine to Texas, said that both sides have moved from their previous positions. The alliance said it also asked the union to extend the current contract.
The report also went into more detail about the economic ramifications, should the strike take place. It will especially affect perishable items, but it could also impact Christmas, which is now less than three months away:
A work stoppage would significantly snarl the nation’s supply chain, potentially leading to higher prices and delays in goods reaching households and businesses if it drags on for weeks.
If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees, to cars, coffee and fruit.
A strike could have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports that could be affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.
Americans could also face higher prices as retailers feel the supply squeeze.
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ILA members are demanding higher wages and a total ban on the automation of cranes, gates and container-moving trucks used in the loading or unloading of freight.
A strike by the ILA workers — set to impact ports from Maine to Texas — would be the first by the union since 1977. West Coast dockworkers belong to a different union and aren’t involved in the strike.
On Monday morning, a report from The Wall Street Journal also warned that "A Dockworkers Walkout Would Close Ports From Maine to Texas and Slam the U.S. Economy."
The looming strike isn't the only newsworthy event that could affect the economy. The southeast and Appalachia regions of the United States were also just battered by Hurricane Helene over the weekend, with another storm approaching in the coming days.
One person who does not appear to have been watching the strike very closely is Gina Raimondo, despite how she serves as Commerce Secretary under the Biden-Harris administration. While speaking to CNBC's Becky Quick on "Squawk Box," Raimondo noted that "I have not been very focused on that" when asked about the strike.
CNBC: What are you hearing will happen if dockworkers strike and it goes longer than a week?
— Wall Street Silver (@WallStreetSilv) September 30, 2024
Harris-Biden Commerce Sec. Gina Raimondo: "I have not been very focused on that."
What is she focused on? That is her job.
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