Dockers' strike | Longer work stoppages could mean higher prices for consumers

RALEIGH, N.C. (WTVD) — Tuesday was the official first day of a longshoremen's strike between the International Longshoreman's Association and the US Maritime Alliance. Both sides are stuck in a contract dispute that has led to the closure of 14 ports from Texas to New England.

Specifically, the ILA is calling for a wage increase of $5 per hour and a limit on automation. The USMX has since increased its offer to a 50% wage increase.

“Our current offer of a nearly 50 percent wage increase exceeds all other recent union agreements, while combating inflation and recognizing the ILA’s hard work to keep the global economy running,” USMX leaders said in a statement. “We look forward to hearing from the Union about how we can come back to the table and actually negotiate, because that is the only way we can reach a solution.”

The strike is expected to impact products in transit to ports as well as exports of products.

“That, in my opinion, is the unnoticed potential negative impact if this continues,” said Michael Walden, an economics professor at NC State University. “We can’t sell the things we make here abroad, so that can have a big impact.”

These products include sweet potatoes, soybeans, tobacco, pork, wood products, poultry and other items.

“I think the bottom line is if there's a contract with a foreign country to import … they may have already paid for those in advance,” Walden said. “But I suspect if this continues, they won’t pay upfront (for the product). So that will mean less income for the farmers and the (agricultural) people.”

The delays in importing goods into the country through U.S. ports and even exporting them could ultimately be passed on to consumers.

“There will be a deal. But not a quick deal. There will be a deal and that means shipping will be more expensive,” Walden said. “And who ultimately pays for it? The company will pass this on to consumers.”

In a statement, President Joe Biden said: “It's only fair that workers who put themselves at risk to keep ports open during the pandemic should also see a significant increase in their wages.”

Meanwhile, the North Carolina Growers Association said in a statement to ABC11: “North Carolina farmers, who continue to contend with significant increases in production costs in addition to this season's difficult weather extremes, are deeply concerned about longshoremen's strikes at our ports and ports.” their impact.” It will impact imported inputs and crop exports. A prolonged strike will increase inflationary pressures at a time when American farmers and consumers are at breaking point.