In the Port of Oakland, California. The last time dockworkers' contracts expired, ports on the U.S. West Coast suffered months of disruption. Learn more about shipping services.
The International Longshore and Warehouse Union's contract expires at the end of June. For those whose livelihoods depend on the port—truck drivers, logistics companies, retailers—July 1 marks the beginning of a period of serious uncertainty.
The labor standoff could exacerbate floating traffic jams, leaving dozens of ships waiting in the Pacific Ocean before they can dock. That could exacerbate shortages and send already high consumer prices soaring.
Some port workers have accused dockworkers of fueling chaos at the port ahead of contract negotiations, increasing their leverage over terminal operators while hindering the flow of goods for everyone else.
"Every time a contract is signed, things slow down," said Anthony Chilton, 55, who drives a truck to move containers between ports and warehouses in Southern California. "We always blame the terminals. Workers. They slack off, take breaks, call in sick.”
Among those who work at the docks, such descriptions have provoked strong dissatisfaction. Dockworkers say they have no intention of slowing down or stopping the economically vital, physically draining and dangerous jobs they do without interruption during the worst pandemic in a century.
“Both sides are getting ready,” Mario Cordero, executive director of the Port of Long Beach, said in a recent interview from his office overlooking towering cranes and stacks of shipping containers , "It's an incentive because the whole country is watching.
As far as the negotiating situation is concerned, both sides appear to have sufficient advantages. For dockworkers, on the one hand, the long fleet of container ships outside the port has become their most powerful weapon. On the other hand, the full-time work of dock workers is very important to maintain the operation of the terminal and stabilize the ultra-high profits of the terminal company. At the opening of the new Pier (Pier 5) in Seattle on Jan. 7, Rich Austin, President of ILWV 19, said, "We've been working hard to improve our productivity over the past 5 to 6 years because we recognize that This is a very competitive industry and the number of containers handled per hour is important.” He also noted that the port employs a lot of temporary workers to support port operations.
For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.
For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.
Beyond that, if the strike takes a toll on the U.S. economy, it won't do the dockworkers themselves any favors.
Dockworkers are among the highest-paid blue-collar workers in U.S. industry, but they argue that this is what they get at risk of their lives. The so-called Class A dockworkers, who have pensions and benefits, as well as regular hours, typically earn more than $100,000 a year. Even "temps" -- those guaranteed no shifts -- start at more than $32 an hour.
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