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    • Workers at major ports on the East Coast are launching a strike that could have major economic consequences
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    Workers at major ports on the East Coast are launching a strike that could have major economic consequences

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    Topline

    Dock workers at all major ports along the East Coast began striking on Tuesday, a move that could have a significant impact on the US economy just weeks before the presidential election.

    Key facts

    Members of the International Longshoremen’s Association (ILA) began their strike at midnight after failing to reach a deal with ocean carriers and port operators represented by the US Maritime Alliance (USMX).

    The ILA is demanding a 77% pay increase over six years, along with a ban on automation, which it claims is hurting workers.

    According to the Associated Press, some progress was reported between workers and port operators several hours before the strike began.

    In a statement, the USMX said it had improved its offering by including a 50% increase over six years, while maintaining currently agreed restrictions on automation.

    However, the ILA has refused to meet with the group of port operators until their wage demands are met, the Wall Street Journal reported.

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    Big number

    45,000. That is the number of dock workers the ILA represents in the fourteen major ports on the east coast affected by the closure. The ports affected are Baltimore; Boston; Charleston, South Carolina; Jacksonville, FL; Miami; Houston; Mobile; New Orleans; New York/New Jersey; Norfolk, VA; Philadelphia; Savannah, Georgia; Tampa, FL; and Wilmington, Delaware.

    Will President Joe Biden intervene?

    The White House said Monday that Chief of Staff Jeff Zients and National Economic Council Director Lael Brainard attended the port operators group Monday and urged them to resolve the issue quickly and fairly. President Joe Biden has the authority to intervene in the strike using the Taft-Hartley Act, which could delay the strike for 80 days. Biden has faced pressure from Republicans in Congress and business leaders to intervene and stop the strike. Biden told reporters on Sunday that he will not invoke the Taft-Hartley Act, adding: “Because it’s collective bargaining, and I don’t believe in Taft-Hartley.”

    What impact will this have on the US economy?

    Experts have offered slightly different figures on the impact of the strike on the US economy. Grace Zimmer, an economist at financial analyst firm Oxford Economics, told the BBC that the strike could cost the economy up to $7.5 billion a week. JP Morgan estimates this number could be even higher, costing the economy between $3.8 billion and $4.5 billion per day. The strike is unlikely to have an immediate impact on consumers as retailers have shipped many items ahead of the holiday shopping season and diverted other freight to West Coast ports. However, the longer the strike continues, the more visible its impact on prices will be.

    Read more

    The expected dock workers strike could cost billions – here’s what you need to know (Forbes)

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