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US: Dockers'strike could cost more than $5 billion a day and cause inflation to spike
Tuesday, October 1, 2024 - 09:00
Foto Unsplash

The White House has urged unions and shipping companies to reach an agreement that would not jeopardize the US economy, although it has ruled out intervening by ordering dockworkers to return to their jobs.

A strike by 45,000 longshoremen began on Tuesday, threatening to paralyze ports on the East Coast and the South of the United States, costing the economy some US$5 billion (4.511 billion euros) a day and potentially causing inflation to rise if supply chains are strained.

The employees represented by the International Longshoremen's Association (ILA) walked off the job at midnight after their contracts expired, jeopardizing the activity of 36 port facilities, including those in New York, Baltimore, Virginia, Savannah (Georgia) and Houston.

In any case, the union has assured that military shipments will continue to be processed and that commercial cruise traffic will not be affected.

Longshoremen have gone on strike, the first on the East Coast since 1977, after negotiations for a new agreement between the ILA and the United States Maritime Alliance (USMX), which represents up to 40 shipping and port operators, were derailed. Points of contention include wage negotiations and the automation of certain operations.

Wages under the now-expired agreement ranged from $20 (18.04 euros) an hour to a maximum of $39 (35.18 euros). The union is seeking a 77% increase over six years under the new contract, reaching a cap of $69 (62.25 euros) an hour by 2030.

The Transportation Department (TTD) of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the largest federation of labor unions in the U.S., issued a statement before the strike in support of the protesters.

"Let's be clear: employers, not workers, have shirked their responsibility and put off labor negotiations until the last minute, when harm to the public and the nation's supply chain would be most damaging," said TTD President and Secretary-Treasurer Greg Regan and Shari Semelsberger.

"Meanwhile, USMX is trying to shift the blame to the workers who are responsible for making our supply chain work when they are the ones responsible," they added.

The White House has urged both sides to reach an agreement that does not jeopardize the US economy, although it has ruled out intervening by ordering the dockers to return to their jobs.

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Europa Press