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3471Nearly 25,000 dockworkers walked off the job, demanding higher pay and protection from their jobs being automated.
It’s the first strike like this in almost 50 years!
These workers are responsible for handling much of the goods we use every day, from cars to construction equipment.
Their union, the International Longshoremen’s Association (ILA), wants a 77% pay increase over the next six years, or the equivalent of a $5 increase per hour for each year of the contract.
At the moment, they have a starting pay of $20 per hour in the first year, $24.75 after two years, $31.90 after three and $39 for workers with at least six years on the job.
The top hourly wage of $39 adds up to around $81,000 a year, but dockworkers can earn a lot more by working extra shifts.
In fact, a report from 2019-20 showed that about a third of dockworkers in New York Harbor made $200,000 or more.
What they’re now demanding is $44 in the first year, $49 the second and up to $69 in the final year.
They’re also asking for better health coverage and protections against automation.
So, what’s at stake here?
These ports are critical as nearly half of all maritime imports come through them.
So, every day that the strike continues, the disruption is costing the U.S. economy billions of dollars.
J.P. Morgan even estimates it could hit $4.5 billion per day if the strike drags on.
Now, I recently finished writing an article for Benzinga about Grant Cardone and his stance on the situation.
If you don’t know, Grant is a well-known real estate entrepreneur, and recently, he had this to say:
Now, sure enough, some of his figures are probably inflated.
But his message was clear:
Workers like the longshoremen deserve better pay, especially when the nation spends so much on other things.
Now, what’s interesting, and what prompted me to write about this in the first place is the mixed reactions that his tweet sparked.
Some people agreed with him, saying that investing in workers who keep the country moving is long overdue.
Others had a different perspective and argued that halting automation isn’t realistic in the long run and that embracing new technology could actually save costs for the American public.
Let me just read some of these replies. I think you’ll find them interesting, as well.
We have Matt over here saying, “Interesting take… doesn’t giving in to them set a dangerous precedent? But you’re right. If we can afford to spend that much overseas on other people, why can’t we better the lives of our own citizens?”
To which Cardone replied, “We negotiate with terrorists,” which, to be honest, doesn’t make much sense because, as far as I know, the US government is adamant about NOT negotiating with terrorists.
Or is he somehow implying the longshoremen are terrorists? I don’t know.
Anyway…
Old America Patriot then says, “I say dissolve the unions. (ALL OF THEM) hire people who want to work. I don’t deal well with extortion.”
Okay, I guess he’s not a big fan.
J. Michael Smith then says, “Pay them. They deserve it! However, banning all automation should be off the table! It’s the future.
And so on.
But what does all of this mean for the regular people?
Well, the longer this strike goes on, the more it could affect the prices of everyday goods and how quickly they reach the shelves.
Think about things like holiday gifts, groceries, and even cars.
Delays and rising costs could hit small business owners and regular consumers.
So far, President Biden hasn’t stepped in, but his team is encouraging both sides to find a solution.
The White House spokesperson said senior officials have been in touch with the U.S. Maritime Alliance and the ILA, pushing for a fair and quick agreement.
Hopefully this whole thing doesn’t drag out indefinitely and is resolved much faster than, for instance, the writer’s strike.
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