New vehicle prices don’t need a reason to climb any higher than they already are, but that’s the situation the nation is facing. Coastal port workers in locations stretching from Maine to Texas recently went on strike, which could slow imports and drop havoc on the auto retail industry.
The strike went into effect this morning, despite port management officials offering higher wages to the union. Representatives said they’d offered an almost 50 percent wage hike and other proposals in the 24 hours leading up to the strike. In a statement, the rep said, “We are hopeful that this could allow us to fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement.”
The labor union represents 45,000 workers, and the strike could end up costing the economy billions per day. Everything from vehicles to food enters the country through coastal ports, making them vital lifelines for consumers and businesses. The action could also impact thousands of jobs, as industries reliant on imported goods may be left without raw materials and other necessary products.
This is the first large-scale strike in almost five decades, and it’s already having an impact. Port authorities said the terminals closed at 5 p.m. ET yesterday and noted that almost 100,000 containers would be held in storage until the strike is over. Another 35 container ships carrying an unknown number of containers will arrive over the next week and will also be held.
[Images: Roman Babakin, Daniel Write98, mzabarovsky via Shutterstock]
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