Huge New Wage Demands
Author: Greg Valliere
September 5, 2024
WAGE PRESSURE: The inflation news has improved in recent months, but there’s still a wild card lurking: wage pressure, led by a huge new demand by longshoremen, who want an 80% salary increase over the next six years. That’s right, they want 80%.
NEGOTIATIONS HAVE STALLED between the union representing workers in East Coast states and in the Gulf of Mexico. The current pact covers six of the 10 largest ports in the U.S.
A STRIKE ON THE SEPT. 30 DEADLINE would come at a crucial time — ahead of the December holiday season and just a month before the U.S. elections.
COMPLICATING THE TALKS is the union’s stunning wage demand — nearly 80% over six years, which would far exceed the 32% pay increase won by the union on the West Coast last year.
WHILE 80% is unrealistic, anything close to that level would set a precedent for larger pay hikes. And this could have a major impact on the global supply chain, with Huti rebels persistently threatening the Red Sea and Canadian longshoremen also considering a strike.
THE LONSHOREMEN ALSO ARE SEEKING to reject any automation provisions in a final deal. They cite record profits by the shipping industry as a justification of huge wage demands.
AS A SEPT. 30 DEADLINE APPROACHES, all eyes will be on the White House. For now, neither the union nor the Biden Administration wants to get involved in negotiations, but if this could become a headache for Kamala Harris and a potential opening for Donald Trump.
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