Tens of thousands of dockworkers walked out of their respective East Coast ports, staging a strike for the first time in 47 years.
The strike occurred at 12:01 a.m. on Oct. 1, 2024. The last strike happened on Oct. 1, 1977, when around 90,000 dockworkers walked out of their ports, and the strike lasted seven weeks.
United States Maritime Alliance (USMX), the company in charge of the dockworkers, has avoided significant strikes until now.
The International Longshoremen’s Association (ILA) was the organization that staged the three-day strike on the East Coast, shutting down ports on Oct. 1 and ending on Oct. 4 after negotiations between the two parties. The strike, which involved approximately 50,000 dockworkers, impacted cargo operations and supply chains and was called to address union demands for improved wages and a reduction in automation.
The workers were initially demanding a 77% wage increase over the next six years, while the USMX was only willing to give a 50% wage increase. The two parties later negotiated a 62.5% wage increase over the next six years, resolving the strike. However, the debate about automation is still lingering, and they have until Jan. 15 to reach an agreement before another strike.
“I want to applaud the International Longshoremen’s Association (ILA) and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports,” said President Joe Biden in a statement from the White House after the strike concluded. “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract.”
36 ports spanning from the Atlantic Ocean to the Gulf of Mexico were affected by the strike.
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As strike fears grew, some consumers decided that stockpiling everyday household groceries and goods was the best way to prepare. This stockpiling was reminiscent of the early days of the pandemic, in which the practice was rampant.
“People usually panic when they think they will not be able to get what they need,” said Justin Ji, a sophomore at Carlmont. “It is the same reason people bought all the toilet paper when COVID hit. It is a fear of being left without anything.”
The agreement comes at a crucial time, as the U.S. needs these ports open to help restock the stores affected by Hurricane Helene and the stockpiling caused by fears of the strike.
As parts of the southern United States continue to rebuild, the ports’ functioning allows for the ability to move emergency supplies and prepare for natural disasters like Hurricane Milton, which made recent landfall in Florida.
“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding,” Biden said.
Strategic adjustments by companies, such as expediting shipping in the weeks leading up to the strike or using air cargo, were used to minimize the impact.
Jake Kaldenbaugh, an investment manager for DoiT International, explained that businesses with flexible supply chains that adapted minimized the effect.
“Looking at a company’s mix of how they get products shows how some companies fly their products, which further lessens the effect of these port shutdowns,” Kaldenbaugh said.
Additionally, many large companies focus on models in which their inventory is already based in a warehouse in the United States, like Amazon, which further minimizes the effect of these shutdowns.
Strikes like this one are essential for the economy because they allow employees to have improved wages, which can lead to increased spending and worker productivity.
“Collective bargaining works and it is critical to building a stronger economy from the middle out and the bottom up,” Biden said.
