These are the consequences of the strike in US ports.

This article was originally published in English

The contract between the ports and some 45,000 members of the International Longshoremen’s Association expired at midnight, and although progress in talks was reported on Monday, workers went on strike. The strike, which affects 36 ports, is the union’s first since 1977.

Workers began picketing the Port of Philadelphia shortly after midnight, walking in a circle at a railroad crossing outside the port and chanting that “there will be no work without a fair contract“.

Boise Butler, a leading union leader, said workers they want a fair contract that does not allow the automation of their jobs. Shipping companies have made billions during the pandemic by charging high prices, he said. “Now we want it back. They are going to give it back to us“said Butler.

Strike as long as necessary

He said the union will strike as long as necessary to achieve a fair agreement, and that has influence on companies. “This is not something that starts and ends,” he said. “We are not weak“he added, pointing out the importance of the union for the national economy.

In the port of Houston, at least 50 workers started picketing around midnight local time, holding signs that read: ‘No to work without a fair contract.’

The US Maritime Alliancewhich represents the ports, declared Monday night that both sides had abandoned their previous salary offers. But no agreement was reached. The union’s first offer in the negotiations was a 77% salary increase over the six years of the contract.

On president, Harold Daggettsaid it was necessary to compensate for inflation and years of small increases. ILA members earn a base salary of about $81,000 (72,854 euros) a year, but some They can charge more than $200,000. (179,000 euros) annually with large amounts of overtime.

Complete ban on automation

However, on Monday afternoon, the alliance announced that it had increased its offer to 50% in six years and committed to maintaining the limits on automation of the old contract. The union wants the complete ban on automation. It was not clear to what extent the two sides are separated.

“We hope that this will allow us fully resume collective bargaining on the other outstanding issues in an effort to reach an agreement,” the employer’s statement said.

In a statement issued early Tuesday, the union said it rejected the latest proposal because “it was well below what the rank and file members of the ILA demand in terms of salaries and protection against automation.” The two sides had not held formal negotiations since June.

Willing to fight as long as necessary

“We are willing to fight as long as necessaryto stay on strike as long as it takes to get the wages and protections against automation that our ILA members deserve,” Daggett said in the statement. “Now they must meet our demands for this strike to end.”

The employers said their offer tripled employer contributions to retirement plans and strengthened health care options. Supply chain experts say consumers they will not notice an immediate impact of the strike because most retailers stocked up on merchandise, bringing forward shipments of holiday gift items.

But if it lasts more than a few weeks, The strike would considerably paralyze the country’s supply chainwhich could lead to increased prices and delays in the arrival of products to homes and businesses.

What impact will the strike have?

If it continues, the strike will force companies to pay carriers for delays and will cause some products to arrive late for the peak holiday shopping season, which could affect the delivery of everything from toys or artificial Christmas trees to cars, coffee and fruit.

The strike will probably an almost immediate impact on the supply of perishable imports like bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas per yearthat is, 75% of the national supply, according to the American Farm Bureau Federation.

I could also paralyze port exports on the east coast and create traffic jams at ports on the west coast, where workers are represented by a different union. The railway sector assures that it can increase your capacity to transport more goods from the west coast, but analysts say they cannot move enough to compensate for the closure of eastern ports.

Supply chain delays

“If the strikes continue, will cause huge delays throughout the supply chaina domino effect that will undoubtedly extend until 2025 and cause chaos throughout the sector,” said Jay Dhokia, founder of logistics and supply chain management company Pro3PL.

JP Morgan estimated that a strike that would close East Coast and Gulf ports could cost the economy between $3.8 and $4.5 billion (between €3,400 and €4,000) per day, part of which would be recovered over time once normal operations resumed.

The strike comes just weeks before the presidential election and could become a controversial issue if there are shortages. Retailers, auto parts suppliers and importers of agricultural products were hoping for a deal or for President Joe Biden to intervene and end the strike by applying the Ley Taft-Hartley, which allows you to request a reflection period of 80 days.