Ports Strike Averted That Would Have Hurt Manufacturers
Randy Wolken, President & CEO
U.S. dockworkers agreed to return to work after port operators sweetened their contract offer, ending a three-day strike that threatened to disrupt the American economy.
The breakthrough Thursday came after port employers offered a 62% increase in wages over six years, according to people familiar with the matter.
The agreement ends a strike that had closed container ports from Maine to Texas and threatened to disrupt everything from the supply of bananas in supermarkets to the flow of cars through America’s factories.
Dockworkers and longshoremen on East and Gulf Coast ports were briefly on strike in a significant labor action which presented real consequences for the U.S. and international economies. Thousands of International Longshoremen’s Association (ILA) members had stopped working on Tuesday. They were striking for a substantial compensation increase and protections from automation.
Labor and business experts estimated the strike could have costed as much as $5 billion daily. The strike would have affected exports and imports, though labor experts emphasize that the economic consequences for U.S. exports could have been much more damaging. The global economic effects of an East Coast port strike, which affect trade and policy planning decisions in many countries, may compel legal action from the White House.
MACNY is monitoring the situation and remains interested in how this chain of events impacts your business. Please get in touch with Tiffany Latino-Gerlock at [email protected] with your concerns or felt impacts.