The International Longshoremen’s Association (ILA) announced that its 45,000 workers had gone on strike at midnight against the U.S. Maritime Alliance, which represents the shipping companies. 

Ports from Mobile, Ala., to Canada are virtually shut down as workers demand a 77% pay raise over six years and an end to all automation. 

Dockworkers already make $81,000 a year, with some workers topping $200,000 with enough overtime. The two sides are far apart on pay, with the company's last offer being a 50% wage increase over the six-year contract. The Maritime Alliance also promised to maintain the automation limits from the last contract, but the union is demanding no automation at all.

“We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues in an effort to reach an agreement,” the alliance statement said.

Bananas, coffee, cocoa, pharmaceuticals, clothing, furniture, vehicles, and even Christmas decorations are among the products that will be affected if the strike lasts more than a few weeks. It's estimated that the action will cost the U.S. economy $3.8 billion a day.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” ILA President Harold Daggett said in the statement. “They must now meet our demands for this strike to end.”

Associated Press:

Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.

But if it goes more than a few weeks, a work stoppage would significantly snarl the nation’s supply chain, potentially leading to higher prices and delays in goods reaching households and businesses.

If drawn out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees to cars, coffee and fruit.

“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” the union said Monday. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.

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Under provisions of the Taft-Hartley Act, Joe Biden could intervene in the strike, ordering an 80-day "cooling off period." The "most pro-union president in American history" wouldn't dare intervene in a strike involving his union "brothers," not when they're set for a huge pay increase and job security due to a ban on automation.

That said, it will be hard to blame Trump for shortages and inflation. Biden-Harrtis will likely come in for the lion's share of the blame if the strike bites into the holiday cheer.

Meanwhile, the Maritime Alliance has filed a grievance with the National Labor Relations Board (NLRB), accusing the union of failing to come to the table to negotiate. That's not likely to smooth the way for a deal.

The union seems prepared for a long walkout. That's not good for the American consumer as it very well might set off another round of ruinous inflation.