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Employers Offer to Boost Dockworkers Pay by Nearly 50 Percent. Will It Be Enough to Avoid Strike?
Townhall.com ^ | 30 Sepbember A.D. 2024 | Rebecca Downs

Posted on 09/30/2024 6:34:31 PM PDT by lightman

An East and Gulf Coast dockworker strike with significant economic ramifications is looming for 12:01am on Tuesday. While reports have come in that such a strike of tens of thousands of workers is "imminent," the Associated Press and Bloomberg have also reported on potential progress.

On Monday night, Bloomberg noted they viewed a memo from the United States Maritime Alliance (USMX) to its member companies offering to raise wages by almost 50 percent as a way to resume negotiations with the International Longshoremen’s Union (ILU) in a hope to avoid a strike of 45,000 workers.

"Our offer would increase wages by nearly 50%, double employer contributions to employee retirement plans, strengthen health care options and a continuation of the current language on automation and semi-automation," the memo read, per Bloomberg.

However, the report also mentioned that a spokesperson for the workers was not aware of the offer:

A spokesperson for the dockworkers union said he was not aware of any such offer. The ILA has been threatening that its workers would walk out of container ports up and down the US East and Gulf coasts if no deal is reached before their current contract expires at 12:01 a.m. in New York.

Negotiations have been at an impasse since June when the union called things off and have remained far apart on wages and automation.

The AP's headline went for a sense of cautious optimism about the strike, "With strike looming, progress is reported in talks between Eastern and Gulf ports and dockworkers."

As that report mentioned:

NEW YORK (AP) — With a strike deadline looming, the union for 45,000 dockworkers and the group representing East and Gulf Coast ports have exchanged wage offers, leaving a ray of hope that a deal can be reached without a major work stoppage.

In a statement, the U.S. Maritime Alliance, which represents 36 ports from Maine to Texas, said that both sides have moved from their previous positions. The alliance said it also asked the union to extend the current contract.

The report also went into more detail about the economic ramifications, should the strike take place. It will especially affect perishable items, but it could also impact Christmas, which is now less than three months away:

A work stoppage would significantly snarl the nation’s supply chain, potentially leading to higher prices and delays in goods reaching households and businesses if it drags on for weeks.

If drawn out, the strike would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees, to cars, coffee and fruit.

A strike could have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports that could be affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.

Americans could also face higher prices as retailers feel the supply squeeze.

...

ILA members are demanding higher wages and a total ban on the automation of cranes, gates and container-moving trucks used in the loading or unloading of freight.

A strike by the ILA workers — set to impact ports from Maine to Texas — would be the first by the union since 1977. West Coast dockworkers belong to a different union and aren’t involved in the strike.

On Monday morning, a report from The Wall Street Journal also warned that "A Dockworkers Walkout Would Close Ports From Maine to Texas and Slam the U.S. Economy."

The looming strike isn't the only newsworthy event that could affect the economy. The southeast and Appalachia regions of the United States were also just battered by Hurricane Helene over the weekend, with another storm approaching in the coming days.

One person who does not appear to have been watching the strike very closely is Gina Raimondo, despite how she serves as Commerce Secretary under the Biden-Harris administration. While speaking to CNBC's Becky Quick on "Squawk Box," Raimondo noted that "I have not been very focused on that" when asked about the strike.

CNBC: What are you hearing will happen if dockworkers strike and it goes longer than a week?

Harris-Biden Commerce Sec. Gina Raimondo: "I have not been very focused on that."

What is she focused on? That is her job.


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: dockworkers; strike
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The horns of a dilemma: Inflationary pressure or hyperinflation from supply chain disruption?
1 posted on 09/30/2024 6:34:31 PM PDT by lightman
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To: lightman

I read somewhere that they want guarantees that “automation” will be controlled. What kind of automation are they referring to? Is tech far enough along so that freight containers can be loaded and unloaded autonomously now? What other automation is in play?


2 posted on 09/30/2024 6:39:28 PM PDT by know.your.why (Floyd)
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To: know.your.why

It’s getting close to that. And when you are paying someone $200/hr to load and unload a ship…it’s worth spending the money to get something that can work 24/7.

The are negotiating themselves out of a job.


3 posted on 09/30/2024 6:43:40 PM PDT by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
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https://x.com/Sweetcaligurl07/status/1840789188133974296

Longshoremen Union President says he will cripple this country.


4 posted on 09/30/2024 6:43:42 PM PDT by TornadoAlley3 ( I'm Proud To Be An Okie From Muskogee)
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To: know.your.why

All of that. The US isn’t as ‘automated’ as places in the East. You can say we aren’t automated at all, except for cursory movements.


5 posted on 09/30/2024 6:44:00 PM PDT by Theoria
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To: Vermont Lt

Aesop’s goose.


6 posted on 09/30/2024 6:44:30 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
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To: lightman
Pretty informative article on dock work and implications of automation and AI.

https://www.inc.com/kit-eaton/longshoremens-fight-against-automation-confronts-an-ai-future/90982222
7 posted on 09/30/2024 6:47:09 PM PDT by know.your.why (Floyd)
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To: All

8 posted on 09/30/2024 6:47:34 PM PDT by BipolarBob (You may call me blind, deaf and dumb but I'm sill a Pinball Wizard.)
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To: TornadoAlley3

...while people in Appalachia have lost their homes...unfeeling democrat bastard.


9 posted on 09/30/2024 6:51:22 PM PDT by who knows what evil? (Hospitals are the most dangerous place on Earth! Dr. David Williams)
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To: lightman

Interesting story. I think it was in the 1950’s when the stevedores went out on strike. The typical tactic at the time was to strike one shipping line but have a slowdown by them at the other lines. This time, however, they shipping companies formed the Maritime Association and voluntarily closed down ALL shipping companies. This meant that the union only had enough in their war chest to last about a week. As I recall, the workers came back to their jobs at a lower wage than they went out at.


10 posted on 09/30/2024 6:52:36 PM PDT by econjack
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To: lightman

Reagan would have fired them, hired replacements and called in troops.

Seems like I posted that already. Maybe on a twin thread.


11 posted on 09/30/2024 7:01:23 PM PDT by xoxox
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To: who knows what evil?

Who? The longhorns?


12 posted on 09/30/2024 7:02:59 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI. )
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To: who knows what evil?

Who? The longhorns?


13 posted on 09/30/2024 7:02:59 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI. )
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To: Vermont Lt

I wouldn’t count on that. I worked for them in the early 80s in their IT department called the NY shipping association. That’s a pretty big mafia to be f ing with!


14 posted on 09/30/2024 7:04:18 PM PDT by Harpotoo (Being a socialist is a lot easier than having to WORK like the rest of US:-))
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To: lightman

av salary of workers there apparently is $39,000 for first 10 years or so- they want a 75% increase to $68,000 plus more perks and benefits according to newsmax- that’s quite a jump


15 posted on 09/30/2024 7:05:37 PM PDT by Bob434
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To: lightman
Uhhhm. Both? I got news for my countrymen, this will not end with "the lonshoreman". In fact it did not even start with them. Has everyone forgotten the recent UPS contract? Don't shoot me I'm just the messenger.

The size of the ripples are directly correlated with the mass of the crap thrown into the water. Joe chummed bigly initially and continued with useless "debt relief" and debt spending.

16 posted on 09/30/2024 7:06:02 PM PDT by Kudsman (Cat lives matter.)
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To: lightman
What is she focused on?

Electing Kamala
17 posted on 09/30/2024 7:07:16 PM PDT by af_vet_1981 ( The bus came by and I got on, That's when it all began)
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To: Vermont Lt

[[The are negotiating themselves out of a job.]]

Yep they may be` newsmax was saying it woudl be cheaper to bring in more automation, which woudl pay for itself in the first couple of months, no overtime, no benefits payed out, no compensation, no insurance payments for automation etc- massive savings-


18 posted on 09/30/2024 7:08:35 PM PDT by Bob434
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To: lightman

The average dockworker makes $650,000 now. Some make up to $1.2 million.


19 posted on 09/30/2024 7:09:46 PM PDT by nwrep
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To: who knows what evil?

Or that woman from Commerce maybe?


20 posted on 09/30/2024 7:11:52 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI. )
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