Approximately 45,000 dockworkers throughout the United States initiated a major strike on Tuesday as union members continue to fight for increased wages and job protection. Experts believe the strike will cost the U.S. economy billions of dollars a day, lead to supply shortages, and cause additional inflation challenges if an agreement is not quickly reached.
According to the Associated Press, the contract between U.S. ports and roughly 45,000 members of the International Longshoremen’s Association (ILA) ended at midnight. The outlet noted that the strike, which affects 36 ports, is the first ILA strike since 1977.
Boise Butler, a local ILA president, claimed that union members want shipping companies to increase their pay and guarantee that their jobs will not be replaced by automation, The Associated Press reported. U.S. Maritime Alliance, which represents the ports impacted by the contract dispute, confirmed that a deal had not been reached as of Monday night.
According to The Associated Press, the ILA initially pressed for a 77% pay raise over a six-year contract. However, as of Monday evening, the U.S. Maritime Alliance had only offered a 50% pay raise over a six-year contract. Additionally, while the ILA has been pushing for a total ban on automation efforts, the U.S. Maritime Alliance offered to keep the automation limits established in the previous contract.
READ MORE: Iconic company closes last full-size US store
In a statement obtained by The Associated Press, the ILA said it had rejected the U.S. Maritime Alliance’s latest proposal since it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.”
According to The Associated Press, supply chain experts have warned that while consumers may not see an immediate impact from the port strike since the majority of retail chains are stocked up ahead of the holiday season, if the strike continues for a significant length of time, consumers could face higher prices and major shipping delays. The outlet also noted that the strike is expected to impact the import of perishable goods, such as produce.
The Associated Press reported that J.P Morgan warned the port strike could cost the economy anywhere from $3.8 billion to $4.5 billion each day.
President Joe Biden told reporters on Sunday that he did not plan to intervene in the port strike. According to The Associated Press, the president could use the Taft-Hartley Act to establish an 80-day “cooling off” period that would allow contract negotiations to continue while port employees continue to work.
In a statement obtained by Fox Business, former President Donald Trump said the port strike was “caused by the massive inflation that was created by the Harris-Biden regime.”
