In a historic move, over 45,000 dockworkers across 36 East and Gulf Coast ports have struck following expiration of their contract early this morning.
Here are five things to know:
- Negotiations between the International Longshoremen's Association and the United States Maritime Alliance have stalled since June. The ILA is demanding a $5 hourly wage increase for six years, while the USMX has offered $2.50 annually. Union members with six years or more of experience currently earn up to $39 per hour.
- Stakes are high, as the East and Gulf Coast ports account for over 68% of containerized exports and more than 56% containerized imports. JPMorgan analysts also warned the economic impact could reach up to $5 billion per day, according to The New York Times.
- In response to the dockworkers strike, President Joe Biden has opted to not invoke the Taft-Hartley Act, which could force workers back to their jobs. Instead, Mr. Biden said the administration is monitoring the situation.
- HHS also issued a statement addressing potential supply chain vulnerabilities. "HHS met with trade associations, distributors, manufacturers and other stakeholders to assess vulnerabilities and supply chain impacts. Current preliminary assessments indicate immediate impacts across medicines, medical devices and infant formula for consumers, parents and caregivers should be limited," the department said.
- HHS also said it is coordinating with the FDA and the Administration for Strategic Preparedness and Response to identify potential shortages and respond accordingly.