Arkansas In For Trouble by National Port Strike

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Over 47,000 dockworkers on East and Gulf Coast ports are on strike, causing widespread fears of crippling the US economy. It’s the most widespread port strike since 1977 and encompasses all East Coast ports from Maine to Florida and along the Gulf to Texas. Some key industries affected by the strike include food, furniture, auto, clothing, pharmaceuticals, wine and spirits, seafood and holiday goods and toys.

“Any strike on America’s docks has the potential to affect consumers and inland ports and terminals,” said Port of Little Rock Executive Director Bryan Day. “If the strike only lasts a few days, the impacts will be minimal, and most Americans probably will not experience any inconvenience. This is the same for ports and terminals on the inland river system.”

On Tuesday, Oct. 1, 2024, the call was made for work to cease. Organizers said they could hold out for months while many big retail chains have prepared beforehand for the holiday shopping season and diverted shipments to the West Coast. Approximately 100,000 containers will be stuck at the Port of New York and New Jersey alone, according to New York officials, the largest of the docks affected.

“If the strike lasts for more than a couple of weeks, the impacts on consumers and inland ports and terminals could be significant,” Day said. “Americans are the world’s largest consumers of goods, and much of those products come across docks on the East Coast and in the Gulf. A prolonged strike will raise costs and result in limited access to certain goods.”

He said for inland ports and terminals, the impacts could mean a reduction in barge and rail traffic, which could impact local industries dependent on raw materials coming from abroad.

“The Port of Little Rock is subject to these risks,” he said.

The strike has been looming for weeks as the International Longshoremen’s Association (ILA) negotiated on behalf of workers at three dozen ports that handle about half the nation’s ocean imports. The now-expired six-year agreement with the United States Maritime Alliance (USMX) expired Sept. 30, 2024. The Biden Administration decided not to invoke a federal law to prevent the shutdown ahead of the Oct. 1 deadline. Key sticking points in the negotiations include wages and benefits and terminal automation.

The shipping companies would like to automate the ports, while the ILA said it could cost some workers their jobs. Due to the increase in shipping and reliance on the supply chain in the aftermath of COVID, the union is seeking a pay increase of $5 per hour over the next six years. Top pay would increase from $39 an hour to $69, a 77% increase. USMX said it has offered a pay increase of more than 50% over the next six years.

According to CNN, industry profits topped $400 billion from 2020 to 2023, which analyst John McCown said is believed to be “more than the industry had previously made in total since containerization started in 1957.”

Presidents have the power to enact the Taft-Hartley Act, which was enacted in 1947 with the purpose of keeping ports open and longshore workers at work. The law was last exercised in 2002 when President George W. Bush halted an 11-day lockout of union members at West Coast Ports. Biden, under the law, can impose an 80-day cooling-off period as an intervention in labor disputes that threaten national security or safety. It would force workers back to their jobs while negotiations proceed.

More than 200 business groups have joined together in sending a letter to the White House, asking Biden to step in.

“The last thing the supply chain, companies and employees… need is a strike or other disruptions because of an ongoing labor negotiation,” read the letter.

Biden told CNN reporters Sunday that he has no plans of intervening “because it’s collective bargaining, and I don’t believe in Taft-Hartley.”

The Biden Administration put out a statement on Oct. 1 standing with the dockworkers, saying that “collective bargaining is the best way for workers to get the pay and benefits they deserve.”

The statement highlights the importance of keeping the ports open as much of the nation deals with the aftermath of Hurricane Helene, although, according to a CNN article, “few, if any,” relief supplies are likely to come from cargo ships to the Southeastern states affected.

“It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well…” the statement read. “It is time for USMX to negotiate a fair contract with the longshoremen that reflects the substantial contribution they’ve been making to our economic comeback.”

“Hopefully, the strike will resolve itself quickly, and America’s supply chain will return to normal,” said Day.

READ ALSO: Jonesboro Airport Named 2024 Arkansas Airport of the Year

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