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On June 10th The International Longshoremen’s Association (ILA) union halted talks with the United States Maritime Alliance (USMX).
The ILA represents approximately 45,000 port workers and the USMX represents container carriers, marine terminal operators, and port associations.
The ILA cancelled talks with USMX after discovering that APM Terminals and Maersk Line are using tech which autonomously processes trucks without ILA labour.
[there is] no point trying to negotiate a new agreement with USMX when one of its major companies continues to violate our current agreement with the sole aim of eliminating ILA jobs through automation
Harold J. Daggett, President, ILA
Workers are on a coastal-wide strike starting today.
The robotic creep infiltrating the global economy shows no signs of slowing down and workers have little recourse other than to strike.
Their previous coastal-wide strike was in 1977.
Supply chain disruption
Investors are being warned that if strikes are protracted, not only will it disrupt the US east coast, but the entire global supply chain leading to speculation that President Biden may have to force workers back on the job via the Taft-Hartley Act which the President has declined to do so far.
The COVID-inspired global supply chain disruptions saw huge shortages in chips, baby milk formula, and tampons.
The ILA has asked for a 61% pay increase on the back of recent union successes such as the United Auto Workers (UAW) wage increases and benefits for its members in response to the cost of living in 2023 which included:
- a 25% increase in base wages
- An immediate 115 increase
- cost of living increases equivalent to $42 an hour
The worry for the Fed would be an increase in the cost of goods as supplies decline, but it’s early in the strike action so it has little impact on the tech trade long-term.
Expect short-term stock price volatility so long as the strikes are continuing.
