Under the new ILA contract, eventually the hourly rate will be $63 or $131,040 per year plus overtime.
The question remains how much of the added cost up from $39 will be passed to consumers.
And if you are interested, here is a summary of what is shipped in and out of the US.
I get a kick out of those who banter about build American, buy American, American jobs. Do they understand the global economy or why Americans can buy many things made outside the US at the prices they do?
QUINNSCOMMENTARY 
To answer the question – I’d say 100 % of the increase will be passed on to consumers. I doubt there will be any increase in productivity to offset the wage increase.
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Absolutely agree about lack of productivity. They have yet to resolve the contract negotiations about automation – that got deferred to January.
This is Biden/Harris Administration caving in advance of the election. Can’t imagine what they promised, what concessions, what give-away was part of the deal.
When asked whether he would invoke Taft Hartley, and its 80 day cooling off period, Biden responded: ““No, because it’s collective bargaining, and I don’t believe in Taft-Hartley.”
A great example of a President who “doesn’t believe” in a law that has been on the books since 1947. He also, apparently, doesn’t believe in our immigration laws.
Keep in mind that the world’s first fully automated port terminal—the Delta Dedicated North Terminal, Rotterdam, Netherlands is 30+ years old. In America, only 3 terminals are fully automated, 3 others are “semi-automated”.
In terms of productivity improvements, the ILA union chief was quoted as saying: “… we want absolute airtight language that there will be no automation or semi-automation …” The only thing more stupid is the protectionist Jones Act – which should have been repealed decades ago. American shippers have relied on that bar to competition for over 100 years.
Would like to see someone contract with the folks in Rotterdam to design a non-union, fully automated shop in Texas or South Carolina, or both. Concurrently, would like to see the the new Administration embraces a “Build in America” strategy while expanding USMCA to include more South American countries with respect to goods imported by truck or train – adding strategic tariffs as necessary for stuff coming into the ports.
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first time I heard someone tell me buying American made products is something he got a “kick out of”–my father worked in a factory which no longer exists–cheaper to buy the products made overseas or Mexico. Better to support our fellow citizens in towns and cities that lost those factories. Free trade unfortunately is not free as labor costs in other countries, subsides, and in some places tariffs on imports make it a challenge to export U.S. products.
The dock folks wanted to stop automation sort of like the horse and buggy folks wanted to stop the automobile. Now that’s something to get a kick out of.
The higher wage is not inflationary–too much $ chasing too few goods is inflation. If you are retired and your income is fixed what happens when prices of certain goods increase? You buy less–you buy a substitute–you look for alternatives. All of us have done this for decades.
When the Fed. increases the supply of money and the politicians send out checks like the corpse did twice I believe, then scarce goods are bid up in price–we devalue the money to buy votes or keep the populace happy. Of course it is the Fed. under Powell, or back 40-years ago under Vockler, that have the cure–higher interest rates to put a brake on the economy.
Like a fever–prices are a symptom of the problem.
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I’ll second what Al said and add that the higher longshoremen wage is based on a relatively small number of workers compared to the billions of dollars worth of goods they offload and load. They do sound like luddites with their request to stop automation, good luck with that. They should be happy with automation up to this point, it has made their jobs a lot easier.
The import/export chart says a lot. We bring in stuff we really need like car parts and tires and we export chicken feet and waste paper. Says something but that’s for another day.
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Sent from my iPad
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Can you say inflation ? Strike is off until Jan. Isn’t that after the election ?
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