The much-feared dockworker strike has ended almost as quickly as it began. Union officials and port operators reached a tentative deal after just three days, and while that time may still cause a disruption in the flow of goods across the country, it will be far less impactful than if the two sides had taken longer to come together.
Union leaders said the agreement yielded a 62-percent wage increase for workers, down a bit from the originally demanded 77-percent raise but better than the 50 percent first offer. The deal also comes after the union leader threatened to “shut down the country,” which could have driven more intense behind-the-scenes negotiations.
Automakers and other companies had looked to West Coast ports as a workaround for the strike, but the action could have been disruptive for all major car companies. Imported vehicles from Europe and Asia would have been impacted, but even American automakers would have been without some of the necessary components.
That said, analysts expect the three-day strike to impact shipments by one week for each day of the action. The strike was the first such move for the union since 1977, and the quick resolution prevented what could have been a significant problem for consumers and politicians. Rising prices are bad for the incumbent political party, and the union leader’s lavish lifestyle didn’t earn him any brownie points with Republicans, who were already looking for reasons to throw shade at unions.
[Images: Shutterstock]
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Source: The Truth About Cars
