Introduction
The recent three-day strike by dockworkers along the East and Gulf Coasts has drawn parallels to historical labor disputes. This significant labor action is reminiscent of past struggles for workers’ rights and fair compensation, underscoring the ongoing challenges faced by those in vital industries.
I am a simple lab’ring man
And I work along the shore,
For to keep the hungry wolves away
From the poor longshoreman’s door.
I toil all day long in the broiling sun
On the ships that come in from the sea,
From early light until late at night
For the poor man’s family.
Then it’s give us good pay
For every day
For that’s all we ask of thee,
For our cause is right
And we’re out on a strike
For the poor man’s family.
The Longshoreman’s Strike, by Edward Harrigan (1875)
Three Day Strike
Dramatically impacting the shipping industry, dockworkers on the East and Gulf Coasts initiated a strike on Tuesday. This marked the first significant work stoppage by the International Longshoremen’s Association (ILA) since 1977, leading to disruptions in approximately half of the nation’s ocean shipping imports and affecting 36 ports from Maine to Texas.
Everyday items like bananas, cars, electronics, and holiday gifts were among the countless goods caught in this disruption, which threatened to cost the economy billions daily, straining supply chains and leading to increased consumer prices.
However, after three days of striking, a tentative agreement was reached. By late Thursday, workers returned to their posts, facing a backlog of work accumulated during the walkout.
The ILA represents 45,000 port workers, and negotiations for a new six-year contract with the United States Maritime Alliance (USMX) had been ongoing since the previous contract expired on September 30. The contract has now been extended through January 15, 2025, allowing further discussions.
Central to the negotiations were wage increases. The ILA demanded a “fair contract” featuring a 77 percent wage increase, while the USMX proposed a 50 percent hike. A few days after the strike commenced, the USMX revised its offer to a 62 percent increase, prompting the ILA to end the strike.
Another contentious issue was automation at ports. The USMX advocates for modernizing operations, while the ILA views this as a direct threat to jobs. Port worker Daniel May articulated the union’s stance, stating:
“Automation over our nation’s ports should be a concern for everyone. The truth is, robots do not pay taxes; they do not spend money in their communities. The ILA will continue to fight until its members receive the contract they deserve.”
It’s unclear how the tentative agreement will address automation, but many speculate that the ILA may secure a ban on it.
Loss of Purchasing Power
Mr. May is correct that robots do not contribute to local economies through taxes. However, he overlooks a crucial fact: enhanced port efficiency could lead to lower prices for consumers on imported goods.
While automation might reduce job opportunities for longshoremen, it could provide much-needed relief to consumers grappling with dramatically rising prices. Over the last four years, purchasing power for wage earners, including longshoremen, has significantly diminished.
According to government CPI reports, consumer prices surged by 22 percent since March 2020. In reality, many prices have doubled or more. Recent shopping experiences will validate these claims.
The decline in purchasing power can be attributed to excessive money printing and deficit spending facilitated by the U.S. Treasury and the Federal Reserve. Ultimately, Congress bears responsibility for not controlling spending. As a result, port workers have had to demand higher wages to compensate for the devaluation of their earnings:
“Pay for longshoremen is based on their years of experience. Under the ILA’s previous contract with USMX, which expired recently, starting pay was $20 per hour. After two years, this increased to $24.75, and after three years topped out at $39 for those with several years of service.”
“The union sought a 77 percent raise over six years, equivalent to a $5 increase per hour annually. According to their proposal, workers could make up to $69 in the contract’s final year.”
Under the tentative agreement, the hourly rate for ILA port workers is set to increase from $39 to $63 over six years.
Bloody Thursday
In contrast to this relatively brief disruption, past negotiations have seen prolonged and intense confrontations. In 1934, Harry Bridges led the ILA in a strike that lasted 83 days across West Coast ports. At that time, longshoremen advocated for a wage of $1 per hour, a six-hour workday, and a 30-hour workweek.
After numerous attempts by the Roosevelt administration to broker a deal, the ILA consistently rejected proposals. Following a peaceful 4th of July in 1934, the situation escalated into violence on Bloody Thursday—July 5. San Francisco police clashed with approximately 2,000 striking workers at Pier 38, leading to widespread chaos and violent confrontations.
The violence culminated outside the ILA kitchen, where police fired on the crowd as tensions escalated. Tragically, several individuals lost their lives, including longshoreman Howard Sperry, who died in the crossfire, while others were injured.
After 26 days of intense conflict, the strike came to an end on July 31, following a membership vote to accept arbitration, despite Bridges’ strong objections. Having been a significant figure in the union, Bridges continued to lead for another 45 years, leaving an enduring legacy recognized through statues and named locations across West Coast port cities.
The Ghost of Harry Bridges
The ILA’s recent actions evoke echoes of past strikes, particularly the rampant inflation of the 1970s, where wage earners experienced a similar erosion of purchasing power. Historical context suggests labor movements tend to resurface during times of economic hardship.
The current inflationary trajectory, fueled by unchecked deficit spending, suggests that prices will continue to rise in the coming years. Although the ILA aims to keep wages ahead of inflation, the agreed-upon 62 percent increase over six years still appears insufficient.
Moreover, wage increases coupled with restrictions on automation could exacerbate operational costs, subsequently inflating the prices of imported goods. Without significant interventions, rising prices will persist as Congress continues to grapple with spending issues.
The complex dynamics of wage negotiations highlight the ongoing struggle for labor rights and economic justice. Workers striving for fair compensation may need to reevaluate whom their frustrations should truly target as the economic landscape continues to shift.
The specter of Harry Bridges looms large over labor struggles today. The recent strike briefly halted dock operations, and while the ILA achieved tangible gains, consumers will likely face the consequences in the form of elevated prices.
Conclusion
As labor movements like the ILA confront modern challenges, it’s essential to consider the broader implications for workers and consumers alike. The complexities of wage negotiations and economic policy underscore the need for dialogue and action to ensure fair treatment for all parties involved.
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Sincerely,
MN Gordon
for Economic Prism
