As the strike by the International Longshoreman’s Association – the largest dockworkers in the country – reaches its second day, the impact of having approximately 50,000 of its 85,000 members walk off the job is a cause of much concern and discussion.
The stoppage brings imports and exports into the country – from Maine to Texas – to a halt. Fourteen ports are most immediately impacted including New York/New Jersey as well as Philadelphia.
In addition to a wage increase of 77% over six years, the Longshoremen’s Union has said it wants a ban on the automation of cranes, gates and container movements that unload and load the freight ships in 36 different ports.
How will this impact the country short-term and long-term? And should the federal government step in?
A number of business and academic leaders weighed in:
Tom Bracken, CEO of the N.J. State Chamber of Commerce:
“This strike could be a disaster,” he said. “It could cause disruptions to world supply chains and negatively affect the New Jersey and national economies. As evidenced by the recent Federal Reserve rate cut, inflation was finally somewhat under control – and the longer this strike lasts, the higher the probability prices will increase. And who knows how long this will last. We do not want the holiday buying season to be interrupted, which is so critical to the health of the economy.
“We believe that anybody who has the ability to stop this strike, slow it down, and try to have the sides come to an agreement – should weigh in. The strike has the potential of being so bad that people who have the ability to mute this – should mute it. There’s absolutely nothing good about this.”
Robert Dowler, president, and Benjamin Lowe, immediate past president and board member of the Association of Supply Chain Management – Greater North Jersey Chapter:
“The impact of the strike could be significant, potentially costing the economy up to $5 billion per day and causing delays in essential goods, especially as the holiday shopping season approaches,” they said. “The strike could also affect international trade, with countries like the United Kingdom feeling the ripple effect.
“President Joe Biden has encouraged continued negotiations between the ILA and USMX. While some operations, like cruise ships and the transportation of certain fuels and essential goods, are expected to continue, the strike could lead to delays in shipments of items such as cars, fruits, and holiday merchandise, exacerbating supply chain pressures.
Seton Hall University Professor and Dean Emeritus Karen Boroff (a recognized expert in management and labor relations):
“Presidents since the time of Truman have been able to forestall labor strikes if they deemed these create national emergencies,” she said. “These tend to be riskier calls for Democrats, since labor believes it weakens the strongest tool in their quiver and Democrats have tried to be considered pro-labor. Right now, the labor vote is wavering for Vice President Harris. At this moment in time, the country faces inflation. Furthermore, disruption to needed goods to rebuild after hurricane Helene has to be considered. The strike can have tremendous impact on the economy.
“We hope leaders are viewing the strike by what is best for the nation and not by a calculus in ‘How will it help my campaign.’ Ironically, President Biden, in his lame duck position, could actually be the elder statesman and put the bargaining parties back at the table and stop the strike with a cooling off period.”
Brad Carson, co-founder and president of Americans for Responsible Innovation said:
“This is evidence of the need for Congress to come up with a workforce response to AI’s integration in our economy. The longshoremen strike is not the last we’ll see in the face of increasing AI’s growing use.”
