Economist warns about disruption as potential ports strike looms

WILMINGTON, NC (WWAY) — Economists are closely watching a potential strike next week that could see work at ports across the east coast come to a halt. 

Talks between the International Longshoreman’s Association—the union representing East and Gulf Coast dock workers—and the US Maritime Alliance have come to a standstill. 

USMX filed a charge with the National Labor Relations Board claiming the ILA is refusing to come to the table. 

Meanwhile, the ILA is threatening a strike starting on Tuesday if an agreement is not met. 

Maritime Attorney Lauren Beagen explains what we do know about the disagreement between the two parties comes down to two main issues. 

“So the top issues that I think that we reliably talk about is the wage increases that the ILA is looking for,” Beagen said. “They are also looking for the clawing back of automation, they want to make sure they are really preserving those human jobs.” 

Mouhcine Guettabi teaches economics at UNC Wilmington’s Cameron School of Business. He said a potential strike would take some time to affect prices on the shelf, but that delays on imported goods would be felt much sooner. 

“If you’re waiting on something in order to build a home or in order to deliver a project, you may get a phone call saying that there are delays. Grocery stores potentially will feel the effects,” Guettabi said. 

In addition—Guettabi noted—the Port of Wilmington is vital to our area’s economy and the rest of the state. 

“There was an analysis that showed the economic contribution of the port is somewhere north of 14 billion dollars—with a B—and that the number of employees that are affected is something like 90,000 employees, not just the direct employees but the indirect and induced affect, meaning all the employees that are potentially touched by the port’s activities,” Guettabi explained. 

Although a potential strike could have far reaching impacts, Beagen said for consumers, now is not the time to raise the alarm. 

“Don’t freak out, right? You shouldn’t go run over to the grocery store and load up. I don’t think that that’s this moment. I think the consumers will be just fine. This hopefully will be a short-term thing. I think the biggest thing that you can do is if you’re a customer of the port, prepare.” 

WWAY reached out to the ILA for comment, but we have not received a response at this time. 

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