:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2175929831-241a04467c4240a6b385a263ab399c2c.jpg "In an aerial view, the Port of Houston Authority is seen during a strike on October 01, 2024 in Houston, Texas. Members of the International Longshoreman's Association have begun a nationwide strike, consisting of more than 50,000 workers at ports along the East Coast and Texas.")
Brandon Bell/Getty Moulds
In an aerial view, the Port of Houston Authority is seen during a strike on October 01, 2024 in Houston, Texas. Associates of the International Longshoreman’s Association have begun a nationwide strike, consisting of more than 50,000 workers at harbours along the East Coast and Texas.
Key Takeaways
- Dock workers could resume their brief strike from October if an settlement isn’t reached between them and dock operators before the Jan. 15 contract deadline.
- While the two sides agreed to a pay flourish in October, issues over port operators’ investment in automation remain a sticking point as the two sides were set to take up again talks this week.
- The three-day strike in October had minimal impact on the economy, but a longer strike could. Depending on the duration of the strike, it could drive up inflation and undermine U.S. economic growth, economists said.
Another workers strike is looming at U.S. moorings and the results could be higher prices and slower economic growth.
Last year, striking workers forced a to sum up stoppage in operations at East and Gulf Coast ports that had some analysts worried would have an results on the U.S. economy. Now, as negotiations on a labor contract are set to continue, economists are again bracing for a potential port strike that could dumb supply chains for everything from cars to coffee.
The United States Maritime Alliance and the International Longshoremen’s Consortium labor union will reportedly resume contract negotiations on Tuesday, Jan. 7. The dock workers and operators agreed to a pay better in October that temporarily suspended the short-lived strike.
Issues remain ahead of a Jan. 15 deadline for a new contract. The bargainings now center on the use of semi-automated cranes at ports, and failure to reach an agreement could result in another port workers’ upon as soon as next week.
Extended Strike Could Add Drag to Economic Growth
While the U.S. economy skirted any important disruptions from the three-day October strike, a longer stoppage would have a bigger impact, especially on the expenses that people pay at stores, wrote BMO senior economist Sal Guatieri.
“A longer walkout would more severely disorder trade and throw a wrench into the supply chains of American manufacturers and retailers,” wrote Guatieri. “Some cutters could be rerouted to the West Coast ports, but at added expense. Delayed shipments and higher freight costs desire largely be passed on to consumers, fanning inflation, including food costs.”
Besides just aggravating inflation, another women’ strike could also hit U.S. gross domestic product.
A workers’ stoppage at East and Gulf Coast ports could potentially bring in anywhere from $0.5 billion to $5 billion per day day, according to various economic estimates.
Using the median evaluation, Guatieri calculated that a one-week strike could shave 0.1 percentage point off first-quarter U.S. GDP. Extend the eradicate out for the whole quarter and it could undercut GDP by a full percentage point, halving BMO’s estimate of 2% growth for the quarter, Guatieri author a registered.