Shipping Crisis or Hostile Takeover?

Members of the New Jersey-based International Longshoremen’s Association (ILA) union, which represents 47,000 port workers, is going on strike which could cause major disruptions in supply chain operations across the country.

Harold Daggett, head of the ILA, threatened that he is going to “cripple” the US economy with strike action.

The dispute has been caused over compensation and automation could halt container traffic from Maine to Texas, costing billions of dollars every day.

“These people today don’t know what a strike is,” a fiery Mr Daggett, the union’s president, said in a recent video post. “I’ll cripple you. I will cripple you.”

After months of threatening to shut down the 36 ports which his union are covered by, stating that container ship employers will not have any workers if their demands aren’t met.

Demands

Some of these demands are for a minimum 60% wage increase, to cease terminal automation projects and job security.

Longshoremen earn up to $39 an hour under the current contract which expired Monday. $39 is $10.66 over the average hourly wage in the United States.

The union’s demand is for wages to increase to around $69 an hour over the next six years.

Dock workers say they don’t want to put in such long work weeks which help them bring in $200,000 annually.

“These companies are making billions of dollars,” Daggett stated, “They should take us along. We brought them to where they are.”

President Biden has been urged by the US Chamber of Commerce to push back the walkout for 80 days, despite the warnings, Biden stated on Sunday that he has no plans to intervene.

Who is Mr. Daggett?

Head of the ILA and long term member of the ILA, Daggett earned $728,000 last year with an additional $173,000 as president emeritus of a local union branch.

Previously, the U.S. Department of Justice brought forward two cases against Mr. Daggett, accusing him of having ties to one of the five major Mafia families in the U.S.

Impacts

With half the ports in the country being shut down, this move is projected to be “Covid 2.0” as the supply chain will be severely tested.

Experts predict this will cost the economy around $1 billion per day whilst causing massive supply chain disruptions.

At this point in time, President Biden could impose the Taft-Hartley Act which would require longshoremen to go back to work for 90 days but as previously stated, he will refuse to do so.

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