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Dockworker strike could hit Michigan hard
From perishable foods to auto parts, the ripple effects from the labor strike at east coast ports could hit Michigan in a variety of ways.
ROYAL OAK, Mich. (FOX 2) - A massive strike at shipping ports on the eastern seaboard could have ripple effects around the U.S., including in Michigan. From perishable foods to auto parts, the shuttering of the docks would cause more than a wrinkle in America's supply chain.
Worried about what shortages could follow, Mike Visconti told FOX 2 he was at Costco stocking up.
"We're taking care of our mother and just want to make sure we have everything that we need - mostly paper goods," he said.
For Tracy Nagle who works in the food sector, its her job that could be affected a potential disruption.
"I work for Gourmet Import company and all our stuff relies on stuff coming in," she said.
The workers that went on strike overnight number in the tens of thousands. They are bargaining for more money and less automation. The contract ended Monday night, which kicked off picketing from the International Longshoremen's Association (ILA).
While progress had been made, it was not enough to stave off a work stoppage. Thirty-six ports are affected.
Industry professionals say the ports impacted by the strike handle roughly half of the country's ship cargo.
"If it goes on for a while, the impact could be quite substantial. I've seen estimates from anywhere from $500 million up to $5 billion a day in damages as a result of this strike," said Michael Greiner, an associate professor of management at Oakland University.
Michigan's auto industry could be hit due to the arrival of car parts and fully assembled automobiles. Some local dealerships are still unclear what the impact might be.
"Cause most of our cars are made here," said Jeffrey Tamaroff, the chairman of the Tamaroff Auto Group. "It might affect EVs because those cars are built overseas, but I’m hopeful they get it solved quickly."
Greiner said food could perish while sitting on the docks if they are not moved in time.
"As a result of that, that could drive up the prices for some of these goods in the short run," he said.
President Joe Biden has said he will not force the workers back to work, despite some grievances from business owners. An option available to Biden is the Taft Hartley Act, which would force the workers to go back to work while they negotiated.
For now many are just hoping this strike does not impact the holiday season.
"If this goes on for too long, that pressure is going to mount for the president to do something because he can’t just sit by and watch the whole economy fall apart because of this," said Greiner.