A major port workers union strike has the potential to spike inflation levels in the United States and abroad if a deal is not quickly reached. This comes in the aftermath of Hurricane Helene’s devastation, which has resulted in thousands of people being cut off from access to food, water, and shelter. A chlorinated chemical plume has overtaken Rockdale County, Georgia, and a presidential election is just over a month away.

The International Longshoremen’s Association (ILA) union is requesting a $5 per hour wage increase per year for six years, which would raise the base hourly pay from $39 to $69, amounting to a 77% wage increase for dock workers. This demand comes in response to stagnant wages despite record profits by shipping companies during the pandemic. The union is also pushing for stronger protections against job losses due to automation. After rejecting an offer of a 50% wage increase, the possibility of a long-term strike remains.

The strike is the first of its kind since 1977 and involves 36 ports representing approximately one-half of all U.S. ocean imports. This stretches from Maine down to Florida and the Gulf Coast of Texas. An analysis by JP Morgan estimates the strike will impact the U.S. economy to the tune of $5 billion daily. For every day the workers are on strike, it is expected to take nearly a week for the ports to catch up to normal operating levels.

Union President Harold Daggett was a port worker in 1977 when the last strike occurred. CNN asked him whether he was concerned about harming families by continuing the strike.

“People never gave a s*** about us until now when they finally realized that the chain is being broken now,” Daggett said. “Cars won’t come in. food won’t come in. clothing won’t come in. You know how many people depend on our jobs? Half the world. It’s time for them, and it’s time for Washington to put so much pressure on them to take care of us because we took care of them. We’re here 135 years and brought them to where they are today, and they don’t want to share. If we have to be out here for one month or two months, this whole world will collapse. Go blame them. Don’t blame me.”

Daggett said they are standing firm on a $5 per hour yearly raise for six years to get back to the bargaining table. He also said royalties should be split 50/50 and stronger language should protect the port workers’ jobs from automation.

The impact is far-reaching and includes multiple industries. Factories that need materials from ships to continue production will have a shortage of supplies, which can lead to significant layoffs. Concerns about food and supply shortages may cause an artificial run-on in grocery stores as consumers begin to panic about buying. Sal Mercagliano, a maritime analyst who was interviewed on Fox, cautioned consumers to take a breath and said people shouldn’t notice a supply chain issue with most common goods at the grocery store.

“Fortunately most food is made within the United States, most fuel is refined in the United States, so those types of things, we don’t really need to worry about or set off a panic,” Mercagliano said. “I think it’s really important that everyone takes a breath back and really understand a lot of the goods you consume are already in the United States right now sitting either in warehouses or in the stores.”

Mercagliano said Walmart, one of the biggest importers, and many of the box stores will run out of some of their goods if the strike continues “a little bit longer.”

Since the potential strike has been acknowledged for months, many companies have stockpiled goods in anticipation of the stoppage on the East Coast. In addition, some companies will be receiving their goods on the West Coast while this strike continues.

Citigroup economist Andrew Hollenhorst said perishable goods, such as fresh fruit, will be the first noticeable shortage. After the strike goes on for a period of time, manufacturing plants will have a shortage of supplies, which will slow down production. This may lead to increased prices on new cars and other manufactured goods.

Other analysts have downplayed concerns regarding shortages of goods and supplies. They say that the supply chain issues during the pandemic taught companies how to prepare for a breakdown in the chain. The union threatened a strike for months prior to the September 30th contract expiration, allowing companies to prepare for shortages in the event a resolution wasn’t achieved in time to keep the ports open.

President Joe Biden could use the Taft-Hartley Act to intervene in the strike. This would require a “cooling off” period in which the workers would have to begin working for an 80-day period. Daggett and others have pointed out that they could be required to work the 80 days, but the law doesn’t require them to work at an efficient rate of speed. For this reason, many experts don’t believe the use of  Taft-Hartley would be a reasonable solution to the ongoing strike. The president has not indicated if he will invoke the law in response to the strike.

Jason Greer, a labor relations consultant who was interviewed on Fox, cautioned about the economic turmoil a continued strike could have on the whole country if it continues for an extended period of time. “Inflation is about 2.5% right now,” Greer said. “Understand, if this goes on longer than two weeks, inflation is easily going to creep up to 4 percent. You’re talking about a $1 billion to $2 billion economic hit per day. This is the type of strike that America cannot afford to an extent. This is the type of strike that we don’t need, especially right now.”

Steven Middendorp

Steven Middendorp is an investigative journalist, musician, and teacher. He has been a freelance writer and journalist for over 20 years. More recently, he has focused on issues dealing with corruption and negligence in the judicial system. He is a homesteading hobby farmer who encourages people to grow their own food, eat locally, and care for the land that provides sustenance to the community.

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