About 50,000 members of the International Longshoremen’s Association union have gone on strike against the United States Maritime Alliance, and it is affecting almost all the major ports on the East and Gulf coasts. This is the union’s first strike since 1977.
Around 45% of all imports into the United States are being affected. Estimates of the economic harm caused by the strike range from $500 million a day to over $4 billion a day. Specifically, economists at J.P. Morgan say the economic cost from the strike would range from $3.8 billion to $4.5 billion a day. The latest offer from the port management group is a 50% increase in hourly wages spread over 6 years. In addition, management is offering a substantial increase in healthcare and pension benefits, and the Maritime Alliance would agree to limit the introduction of automation technologies at the ports.
