For the first time in decades, 45,000 dockworkers have gone on strike at 36 U.S. ports stretching from Maine to Texas, and they may have the upper hand in negotiations over wages and automation concerns. With rising public support for organised labour and a string of recent union victories, coupled with backing from the pro-union Biden administration, the workers are positioned favourably in this standoff.

The strike comes amid an already strained supply chain, impacted by Hurricane Helene and coinciding with peak shipping season for holiday goods. Additionally, dockworkers are highlighting record profits made by shipping companies during the pandemic and pointing to a favourable contract achieved by West Coast dockworkers last year. Increased workloads and inflation’s impact on pay have further fuelled their demands.

Commerce through U.S. ports has been growing, and with a tight job market, the union’s position is strengthened as they demand a fair share of the industry’s gains. "This work group has a lot of bargaining power," said Harry Katz, Professor, Cornell University. "They’re essential workers that can’t be replaced, and the ports are doing well."

The strike, their first since 1977, could disrupt supply chains, leading to shortages and higher prices if it extends beyond a few weeks. Major retailers had anticipated the strike and stocked up on goods, but consumers might start seeing shortages of perishable items, like bananas, if the strike continues.

Negotiations showed little progress until just hours before the strike began, with the U.S. Maritime Alliance, representing the ports, offering a 50% wage increase over six years. The union, however, is holding firm on its demand for a 77% raise over the same period. Early picketing saw workers carrying signs stating: “Automation Hurts Families: ILA Stands For Job Protection.”

Union leaders like Boise Butler, president of the local chapter in Philadelphia, emphasised their opposition to automation that could reduce jobs, arguing that shipping companies profited significantly during the pandemic. “Now, we want them to pay back. They’re going to pay back,” Butler asserted. In New Orleans, Henry Glover Jr., a fourth-generation dockworker, expressed concerns that automation is being used to cut jobs. “We don’t want them to implement anything that would take our jobs out,” he said.

Experts, including William Brucher from Rutgers University, noted that this is an ideal time for dockworkers to strike, as recent West Coast contracts have shown that higher wages are achievable. However, under the Taft-Hartley Act, President Biden could seek a court order for an 80-day cooling-off period to temporarily end the strike. But Biden, wary of losing union support, has said he won’t take that step for now.

In a statement, Biden urged the shipping alliance to negotiate a fair contract, stressing the critical role dockworkers play, especially in the aftermath of Hurricane Helene. “Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits,” Biden stated.

For now, the administration is expected to stay out of the dispute unless consumers begin to face shortages of critical goods like medicines, which could pressure them to intervene. "If the administration wanted to have a reason to get involved, it’s stuff like that," said Ben Nolan, a transportation analyst with Stifel.

(ET)