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East Coast Dock Workers Strike Ends … But Might Resume January 15.
News is about suspension of strike until 1/15/25, the date to which the current contract is being extended with agreement on wages only. The rest of the issues will have to be negotiated by 1/15/2025.
Wage increases will be as follows: Current base wage $39/hr Increase of +$4/hr for each of the nexr 6 years. So, wages will go like $39/hr, $43/hr, $47/hr, $51/hr, $55/hr, $59/hr, $63/hr (6th year).
Rational cited is that shipping companies made lot of money when rates skyrocketed during & after pandemic and due to other geopolitical factors.
So, those shipping rates aren't ever going back to what they were in view of this temporary contract extension.
Many ask will prices rollback when inflation is 0% - NO, they will just stay at higher levels.
It appears the union was able to obtain decent wage increases for its workers. I'm glad this strike didn't last long. I doubt the union will be successful curbing automation in future contract negotiations.
Inflation isn’t just increasing prices. It’s also increasing wages. The two may not move in perfect harmony. Longer term it tends to even out. But it can appear herky-jerky on either side of the coin. The old adage / warning about the hazards of living on a fixed income during retirement ring true today. Over decades you’d be swamped by price increases without having either a good COLA adjustment or alternative sources of income (ie investments). Likely, the one area seniors probably need most as they age - health care - has increased more than the rate of inflation in recent years.
I’m wondering if the short strike affected the cost of imports and hurt foreign based companies that import to the U.S. - if only briefly. And unconfirmed media reports suggest shoppers had begun to hoard necessities again with some Costcos running out of paper towels and toilet tissue. Amazing how everything is interconnected.
@Observant1: I think you are correct about no deal on automation or any scheme to prevent erosion of the bargaining unit. STM, that the suspension of the job action permits merchandise headed to retailers for holiday shopping, but that the sides have kicked the can on the really difficult issues. I believe there have been no disruptions in west coast ports. However, some shippers were already diverting traffic to the west coast in anticipation of a long strike; reversing those plans may create delays also.
While the government said it won't interfere by ordering workers back under Taft-Hartley, my guess is that it used that power to pressure both sides to come to a temporary resolution.
1. Management was at +$3/hr increase each year for 6 years, but the union was asking +$5/hr. So, they were probably told to split the difference and settle for +$4/hr wage increases NOW.
2. Both sides will continue to haggle on other aspects until 1/15/24.
A long port strike could be very disruptive for the supply-chains and the economy. Pictures of people already hoarding supplies weren't good. Powell probably took note of these wage increases that were multiple times of his +2% average inflation target.
Anybody else notice the Union President ( and his son) make close to $ 1,000,000 a year? Dad owns a Bentley but recently sold his 60 foot yacht, was indicted on RICO charges for mob connections ( and one of his co-defendents was killed in mob hit).. nice!
The union’s constitution allows Daggett to call a strike without a vote of his members.
One third of NYC longshoremen make oer$200,000 with overtime, although starting pay is much lower
Seems to ignore GOP anti labor record and clearly favors Trump
To @hanks point on inflation, the premiums for 2025 HC policies are out. I have been in the lowest premium policy and the premium for 2025 has increased again by over 15%.
May be we should start a new thread on HC insurance with renewals coming up.
Comments
Wage increases will be as follows:
Current base wage $39/hr
Increase of +$4/hr for each of the nexr 6 years.
So, wages will go like $39/hr, $43/hr, $47/hr, $51/hr, $55/hr, $59/hr, $63/hr (6th year).
Rational cited is that shipping companies made lot of money when rates skyrocketed during & after pandemic and due to other geopolitical factors.
So, those shipping rates aren't ever going back to what they were in view of this temporary contract extension.
Many ask will prices rollback when inflation is 0% - NO, they will just stay at higher levels.
https://www.cnn.com/2024/10/03/business/port-strike-union-deal/index.html
I'm glad this strike didn't last long.
I doubt the union will be successful curbing automation in future contract negotiations.
I’m wondering if the short strike affected the cost of imports and hurt foreign based companies that import to the U.S. - if only briefly. And unconfirmed media reports suggest shoppers had begun to hoard necessities again with some Costcos running out of paper towels and toilet tissue. Amazing how everything is interconnected.
1. Management was at +$3/hr increase each year for 6 years, but the union was asking +$5/hr. So, they were probably told to split the difference and settle for +$4/hr wage increases NOW.
2. Both sides will continue to haggle on other aspects until 1/15/24.
A long port strike could be very disruptive for the supply-chains and the economy. Pictures of people already hoarding supplies weren't good. Powell probably took note of these wage increases that were multiple times of his +2% average inflation target.
The union’s constitution allows Daggett to call a strike without a vote of his members.
One third of NYC longshoremen make oer$200,000 with overtime, although starting pay is much lower
Seems to ignore GOP anti labor record and clearly favors Trump
https://en.wikipedia.org/wiki/Harold_Daggett
President of company that owns the docks tweets regularly in favor of Trump and profane and disgusting tweets against Biden and Harris.
https://www.theguardian.com/business/2024/oct/03/port-strike-usmx-biden-democrats?CMP=Share_iOSApp_Other
Seem to be two sides of the same coin
Detroit? They’re still looking for Jimmy Hoffa.
May be we should start a new thread on HC insurance with renewals coming up.