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Could the US port strike affect Belize?

HeadlineCould the US port strike affect Belize?

by Charles Gladden

BELIZE CITY, Wed. Oct. 2, 2024

Over ten thousand dockworkers in the United States decided to go on strike when the clock hit midnight on Tuesday, October 1, in an effort to secure higher wages and a ban on all automation at the ports at which they are employed. It is a move that could snarl supply chains and deal a severe blow to the US economy.

Over 45,000 workers from the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are participating in the strike, which is the first to take place at their respective ports in almost 60 years, after the unions failed to reach a new contract agreement with their employers.

The strike has caused a shutdown affecting an estimated 36 ports from Texas to Maine. US media outlets highlighted that more than 500 union members gathered at the gates of Maher Terminals in Elizabeth, New Jersey, at the commencement of the strike.

The unions are highlighting the fact that shipping companies generated record profits during the COVID-19 pandemic, but that those gains were not proportionately shared with dockworkers, whose increased take-home pay over the last few years has been outweighed by a workload increase and the effects of inflation throughout recent years.

“During the pandemic, because they were quoted as ‘essential workers’, they had to work throughout the pandemic. Cargo did not stop moving during the pandemic. Their complaints were their workers had to work through this pandemic and the Alliance made record profits in the billions of dollars. They are saying the longshoremen are the ones who took all of the risk to make all of the profits,” said Delroy Fairweather, customs broker for Benny’s Enterprises.

According to Fairweather, the strike shouldn’t be a threat to Belize’s imports for the next several weeks, as most businesses have imports lasting several months. He noted, however, that it would affect the delivery of goods and commodities sent to the US.

“Depending on how long this is happening within the US, it seems as if nothing will change soon because these longshoremen have a demand that they have placed, and the maritime community and the owners aren’t backing down from it. So, what might happen is that you might see some inflationary effect,” he highlighted.

In reference to the deployment of automated machines at ports—something the union workers are demanding that their employers refrain from doing—Fairweather noted that close to a thousand workers were displaced when such machines were introduced in Los Angeles.

“When the Port of Los Angeles went into this automation, 800 lost their jobs immediately. The wage increases they are asking for would be 60% to 75% over 6 years. They know what automation brings, and it definitely will [cause] persons to lose their jobs. Automation robots don’t pay taxes; they don’t have families to feed. Then you have to strike a balance between automation and how will you deal with persons who are displaced from doing these traditional jobs,” he mentioned.

“… Then what will happen is the shipping company will make a record profit, because then the machines will work around the clock. The machines don’t need to take any time off or call in sick. If it stops working it can be quickly replaced with another machine, and that is one of the biggest fears that the workers have,” Fairweather added.

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