Dockworkers Threaten Strike That Could Disrupt Supply Chains and Impact Consumer Goods

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Dockworkers Threaten Strike That Could Disrupt Supply Chains and Impact Consumer Goods
Dockworker StrikeSupply Chain DisruptionConsumer Goods
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Thousands of dockworkers at major U.S. ports are threatening to strike on October 1st, potentially causing significant supply chain disruptions and impacting consumer goods like bananas, plywood, and autos. The strike could cost the economy billions and disrupt manufacturing networks.

The Port of Philadelphia’s Packer Avenue Marine Terminal. Some 45,000 dockworkers at every major eastern and Gulf coast port are threatening to strike Oct. 1. Just as U.S. policymakers shift focus from curbing inflation to shoring up the job market, the economy faces a jolt that threatens the kind of supply-chain disruption and consumer discontent rife during the pandemic — and possibly puts your daily dose of bananas at risk.

The two sides remain far apart. The union is demanding a near-80% raise over six years, arguing workers deserve a share of profits won by foreign-owned container carriers during the pandemic. Reluctant to set such a precedent — and with some reserves in the bank — companies could wait it out longer than usual.

“It is disappointing that we have reached this point where the ILA is unwilling to reopen dialogue unless all of its demands are met,” the USMX said in a statement last week. Stellantis NV, which is facing its own strike threat, has an inventory buildup thanks to slow sales, though supply-chain issues could still hamper production of particular models. The company didn’t respond to a request for comment.

They’d spoil if left on the docks too long, or face higher costs given the delays and extra refrigeration needs.

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Dockworker Strike Supply Chain Disruption Consumer Goods Inflation Economy

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