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Dockworkers go on a strike that could reignite inflation and cause shortages in the holiday season
PHILADELPHIA (AP) — A strike by dockworkers at 36 ports from Maine to Texas, the first in decades, could snarl supply chains and lead to shortages and higher prices if it stretches on for more than a few weeks.
Workers began walking picket lines early Tuesday in a strike over wages and automation even though progress had been reported in contract talks. The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight.
The strike comes just weeks before the presidential election and could become a factor if there are shortages.
Workers at the Port of Philadelphia walked in a circle outside the port and chanted “No work without a fair contract.” The union, striking for the first time since 1977, had message boards on the side of a truck reading: “Automation Hurts Families: ILA Stands For Job Protection.”
Local ILA president Boise Butler said workers want a fair contract that doesn’t allow automation of their jobs.
Shipping companies made billions during the pandemic by charging high prices, he said. “Now we want them to pay back. They’re going to pay back,” Butler said.
He said the union will strike for as long as it needs to get a fair deal, and it has leverage over the companies.
“This is not something that you start and you stop,” he said. “We’re not weak,” he added, pointing to the union’s importance to the nation’s economy.
At Port Houston, at least 50 workers started picketing around midnight local time carrying signs saying “No Work Without a Fair Contract.”
The U.S. Maritime Alliance, which represents the ports, said Monday evening that both sides had moved off of their previous wage offers. But no deal was reached.
The union’s opening offer in the talks was for a 77% pay raise over the six-year life of the contract, with President Harold Daggett saying it’s necessary to make up for inflation and years of small raises. ILA members make a base salary of about $81,000 per year, but some can pull in over $200,000 annually with large amounts of overtime.
Monday evening, the alliance said it had increased its offer to 50% raises over six years, and it pledged to keep limits on automation in place from the old contract. The alliance also said its offer tripled employer contributions to retirement plans and strengthened health care options.
The union wants a complete ban on automation. It wasn’t clear just how far apart both sides are.
In a statement early Tuesday, the union said it rejected the alliance’s latest proposal because it “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.” The two sides had not held formal negotiations since June.
Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.
But if it goes more than a few weeks, a work stoppage could lead to higher prices and delays in goods reaching households and businesses.
If drawn out, the strike will force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys and artificial Christmas trees to cars, coffee and fruit.
The strike will likely have an almost immediate impact on supplies of perishable imports like bananas, for example. The ports affected by the strike handle 3.8 million metric tons of bananas each year, or 75% of the nation’s supply, according to the American Farm Bureau Federation.
It also could snarl exports from East Coast ports and create traffic jams at ports on the West Coast, where workers are represented by a different union. Railroads say they can ramp up to carry more freight from the West Coast, but analysts say they can’t move enough to make up for the closed Eastern ports.
J.P. Morgan estimated that a strike that shuts down East and Gulf coast ports could cost the economy $3.8 billion to $4.5 billion per day, with some of that recovered over time after normal operations resume.
Retailers, auto parts suppliers and produce importers had hoped for a settlement or that President Joe Biden would intervene and end the strike using the Taft-Hartley Act, which allows him to seek an 80-day cooling off period.
But during an exchange with reporters on Sunday, Biden, who has worked to court union votes for Democrats, said “no” when asked if he planned to intervene in the potential work stoppage.
A White House official said Monday that at Biden’s direction, the administration has been in regular communication with the ILA and the alliance to keep the negotiations moving forward.
___
Krisher in reported from Detroit. Associated Press journalists Ben Finley in Norfolk, Virginia, Mae Anderson and Wyatte Grantham-Philips in New York, Dee-Ann Durbin in Detroit, Josh Boak in Washington, and Annie Mulligan in Houston contributed to this report.
World
Russian strike on Kherson market kills seven, authorities say
Ukraine President Volodymyr Zelenskyy shared images of an attack on a crowded public area, insisting that similar attacks can be prevented with international support.
Ukrainian authorities say an apparent Russian artillery strike hit a market in the city of Kherson on Tuesday morning, killing at least seven people and wounding three.
Regional Governor Oleksandr Prokudin said the strike hit as shoppers made their way between stalls at a market in the city centre. He published a video showing the blurred corpses of people in civilian clothes lying near a destroyed vegetable stall.
The General Prosecutor’s Office said the strike was “most likely” carried out by Russian artillery.
Ukrainian President Volodymyr Zelenskyy also shared images of the attack. Posting on X, he wrote that Russia “can be stopped” as it continues its offensive.
“We must achieve lasting peace for our state and our people,” Zelenskyy insisted. “For this to happen, Ukrainian strength and the resolve of our partners must outweigh Putin’s desire to wreck terror.”
Kherson fell into Russian hands after Moscow’s full-scale invasion in February 2022. A Ukrainian counteroffensive nine months later recaptured western areas of the region, including its eponymous capital.
The Kherson region was one of four, also including Donetsk, Luhansk, and Zaporizhzhia, that Moscow illegally annexed in September 2022 and is partly occupying. Russian President Vladimir Putin wants Ukraine to withdraw completely from those regions as part of any peace settlement, a notion Ukraine rejects out of hand.
Kherson city has not recently been a hotspot in the war, which is now deep into its third year, as the fiercest battles have been taking place in Ukraine’s eastern Donetsk region. Russia’s army is pushing hard to take ground there ahead of the harsh Ukrainian winter.
While Ukrainian forces are still holding Russian territory after a cross-border incursion into the Kursk region, Kyiv is still waiting to hear what further Western military and financial support it can count on.
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