Thursday, September 26, 2024

Will the Port strike shut down the economy next week?

 Watch: https://www.youtube.com/watch?v=SpqhYxd3ShI

The International Longshoreman's Association (ILA) will go on strike on October 1.  They represent 85,000 port workers in Houston, New Orleans, Mobile, Miami, Jacksonville, Savannah, Charleston, Wilmington NC, Norfolk, Baltimore, Wilmington DE, Philadelphia, Ports of NJ and NY, and Boston and others. 56% of all US cargo traffic will be affected.

If the strike lasts more than a few days, the effects will be devastating.  This may be an exaggeration, but auto dealers may be forced to close (because new cars can't be delivered), and gas stations may be forced to close (because they run out of gas), and delivery by trucks will stop.  Amazon may have to shut down.  Christmas may have to be cancelled because consumer good can't be obtained.

The ILA workers are currently paid an average of $39/hour and want a 77% raise over the next 6 years.  They also want a total ban on any port automation, including presumably automated gates, self-driving trucks, robotic cranes, etc.  The USMX has offered a 40% increase in wages.  The pay is probably not the sticking point, but the automation is.  

I think the ILA position is unreasonable, and the strike will probably go on for a few weeks until the President (or whoever is controlling him) will step in and force a settlement right before the election, which won't make his party popular.

Let's see what happens.  I think it will be crazy in about a week.

Update: The strike has been postponed until January 15, 2025, just in time for the new president to deal with.  https://www.cnn.com/2024/10/04/business/port-strike-ends-whats-next/index.html

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