US port workers threaten 2nd strike: 5 things to know

Port workers represented by the International Longshoremen's Association are threatening to strike on Jan. 15, as contract negotiations with the United States Maritime Alliance, or USMX, remain stalled over issues of automation and job protections. 

Here are five things to know: 

1. ILA dockworkers are pushing for stronger protections against automation as part of their contract negotiations with USMX. While the current contract expired in September, a three-day strike in October secured generous pay concessions.  However, the issue of automation remains unresolved, Bloomberg reported Jan. 3. The union seeks stricter measures to prevent automation from replacing jobs traditionally held by skilled laborers at ports. 
   
   
2. In response, USMX, which represents over 30 major port operators and shipping lines, issued a statement emphasizing their commitment to modernizing ports through technological advancements. They noted that the proposed contract includes a historic 62% wage increase for ILA members over six years and stressed that improvements in automation would not come at the expense of jobs. "We have been clear that this can, and will, be done in a way that not only protects jobs, but adds new jobs as our operations expand," the USMX statement said. "Modern technology is proven to dramatically increase the amount of cargo that can be moved through a port annually." 
   
   
3. The shipping industry is bracing for disruptions, with major companies already warning customers about surcharges due to potential delays, according to the Bloomberg report. Shipping giant Hapag-Lloyd, for example, has alerted clients to expect surcharges of up to $1,700 for affected shipments. 
   
   
4. Economists predict that a short strike lasting a week or two would likely cause minimal damage to the U.S. economy, with GDP losses ranging from $1 billion to $5 billion per day. However, longer disruptions could cause significant product shortages, affecting industrial production and consumer spending.
   
   
5. The potential strike could present a challenge for President-elect Donald Trump, who will take office just days after the Jan. 15 deadline. While Trump has voiced support for the ILA's fight against automation, intervening to end the strike could present challenging political dynamics.