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US port workers go on strike; companies care and Biden preaches negotiation
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An important maritime route in world trade, the East Coast of the United States is going through a period of strike. The movement began at midnight this Tuesday (1), and has 50 thousand members of the International Dockworkers Association (ILA). Depending on how long it lasts, it could be the country's biggest strike in decades, affecting imports and exports.
Almost every port from Maine to Texas will go on strike. The affected coast has an outlet from the Gulf of Mexico (Texas) to the Atlantic Ocean (Maine). The products sold are varied: food (alcoholic drinks and fruits), household items and factory parts, as well as many others.
The strike
This is the first port shutdown on the East Coast since 1976. “United States Maritime Alliance (USMX)” is the maritime alliance that represents the main shipping routes. There is a distance between your contract offer and what the union deems to be fair. In a statement, ILA president Harold Daggett pointed out the reason for the strike (via CNN):
“USMX started this strike when it decided to stand firm with the foreign-owned ocean carriers that make billions of dollars in profits at U.S. ports, but not compensate the American ILA longshoremen who do the work that brings them wealth… We are prepared to fight as long as it takes… to get the wages and protections against automation that our ILA members deserve.”
There has still been no response from USMX, but it has indicated that the union does not act in good faith. Yesterday, he proposed a 50% increase in a 6-year contract, which was denied. Points to be observed are the Ports of New York and New Jersey, the third largest in the country, and Port Wilmington, most responsible for the maritime route of bananas in the USA. It is the most popular fruit in the country.
With access to the Atlantic Ocean, the state of New York has important port activity (Photo: reproduction/scratsmacker/Pixabay)
Consequences and developments
The shortage caused by the strike would be the worst possible scenario, which would result in an increase in the prices of imported products after the improvement in the economic situation brought about by the pandemic. Still, holiday shopping is not threatened. This is due to the fact that stores are concerned about obtaining their products precisely at this time of year and, as the strike has been announced for some time, it was possible to organize. However, perishable items may already have their sales affected next week, even if the US Department of Agriculture does not see any short-term effects.
The financial issue driven by the request for a salary increase is not the only cause of the strike. There is also a dispute involving the automation of ports and, therefore, a reduction in jobs. More than two hundred companies have already communicated with the White House with concerns about what will happen. President Joe Biden said he does not intend to use the law (Taft-Hartley) to keep ports open, believing it to be a collective negotiation.
Featured Photo: port situation causes apprehension in the USA (Reproduction/TravelScape/Freepik)
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US port workers go on strike; companies care and Biden preaches negotiation
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US port workers go on strike; companies care and Biden preaches negotiation