In a bold move that has sent shockwaves through the American economy, Harold Daggett, president of the International Longshoremen’s Association (ILA), initiated a massive strike that effectively shut down every port along the U.S. East and Gulf Coasts early Tuesday morning. This walkout follows Daggett’s earlier warning to “cripple” the economy if the concerns of dockworkers regarding job security and automation were not addressed.
Daggett, who has not held strike authorization votes among the longshoremen, exercised his authority to order workers off the job, raising alarms about the potential economic fallout. Analysts at JPMorgan estimate that the strike could cost the U.S. economy up to $4.5 billion per day. Despite reassurances from the White House, the repercussions of the strike are being felt across global supply chains, impacting various industries.
The ILA is fighting for higher wages and job security amid growing fears that automation will eliminate jobs in the shipping industry, similar to the plight of autoworkers in Detroit. Daggett rejected an offer of nearly a 50% wage increase from port operators, asserting that such provisions would not sufficiently protect jobs against automation. “The preservation of jobs is non-negotiable,” the union stated in a message on Tuesday.
As Daggett takes his campaign global, targeting ports in countries like Chile and Portugal, he finds himself under scrutiny. Critics accuse him of exacerbating recovery efforts from Hurricane Helene in hard-hit areas like North Carolina and Georgia by halting essential imports of food and pharmaceuticals. Additionally, Daggett’s high salary of $728,000 last year and affluent lifestyle have drawn mockery, with Elon Musk joking about his wealth on social media.
Harold Daggett, 78, who rose through the ranks of the union after starting his career as a mechanic in 1967, is no stranger to controversy. His past connections to organized crime have been well-documented, though he has denied any wrongdoing. Recently, he has expressed dissatisfaction with President Biden’s support, stating, “Where is the president of the United States? He’s not fighting for us.”
Despite Daggett’s position, U.S. ports lag behind international counterparts in adopting automation, which has been a significant factor in declining operational efficiency. Remote-controlled cranes are already commonplace in ports in countries like the Netherlands and Australia, highlighting the growing need for the U.S. to adapt.
As the strike continues, Daggett has vowed to remain steadfast until the U.S. Maritime Alliance (USMX) agrees to a $5 hourly wage increase and guarantees against automation. USMX maintains that their offer exceeds recent union settlements and aims to address inflation while recognizing the hard work of dockworkers. However, analysts predict that significant government intervention may be required to bring the strike to a close.
Daggett’s commitment to the cause reflects a broader struggle within the labor movement as workers seek to protect their livelihoods in an era increasingly dominated by technological advancements.
