The first week of October saw a brief, but consequential, strike by East Coast dockworkers that was seemingly settled after a few days. However, if we look below the surface, the issues raised by the striking dock workers transcends the longshore industry.
This strike received so much attention because shutting down the ports on the East and Gulf coasts would have adversely impacted the economy. The potential fallout could have affected the election. A long-term strike would have resulted in shortages and price increases of many goods. Indeed, the strike was even the purported cause of people rushing out to hoard toilet paper.
There are two reasons for the strike. The first is wage and salary demands; the second is how to address impending industry automation.
The International Longshoremen’s Association sought a 77% pay increase spread over a four-year term. The United States Maritime Alliance offered to increase pay by about half that amount. The two sides tentatively settled on a 62% increase, subject to ratification by union members.
This is important because wage increases are generally seen as inflationary unless they are accompanied by corresponding worker productivity increases. Prior inflationary periods have come........