45,000 US Port Workers Have Officially Gone on Strike
The resulting scarcity further drives up prices, exacerbating the inflationary cycle and intensifying economic pressures on workers leading to more strikes.
Just yesterday I was having breakfast at Don’s Diner and I met an old timer (about my age - LOL) and we were recounting some Pittsburgh history such as the Arsenal explosion during the Civil War and the Great railroad strike of 1877.
These two events were separated by 15 years.
He was curious about my decision to move to Pittsburgh, and I shared my interest in the city's significant role in the energy and technology sectors.
I explained how the rich coal deposits in Castle Shannon, which fueled the Industrial Revolution, were just the beginning. Pittsburgh also played a crucial role in the transition from coal to oil, with the discovery of oil in the city. Furthermore, Pittsburgh became the headquarters of electricity, thanks to Westinghouse's sponsorship of Tesla and the prevalence of alternating current over Edison's direct current.
Pittsburgh's significance in energy and technology advancements cannot be overstated. It is home to the largest US natural gas formation and the Westinghouse Nuclear Division, with portable nuclear power plants. The city's rapid transitions from horse and buggy to oil, gas, electricity, nuclear, and AI are a testament to its current importance, making it a story too significant for a news reporter to overlook.
The Allegheny Arsenal Explosion
On September 17, 1862, the same day as the Battle of Antietam, a devastating explosion occurred at the Allegheny Arsenal in Lawrenceville, Pittsburgh.
The arsenal employed primarily women and children to manufacture ammunition, as many men were away fighting in the Civil War.
The explosion is believed to have been caused by a spark from a horse's iron shoe or wagon wheel igniting loose gunpowder on the ground. The blast killed 78 workers, mostly young women, and injured over 150 others, making it the worst civilian disaster of the Civil War. In the aftermath, witnesses reported gruesome scenes, including dismembered body parts found in nearby trees, as the force of the explosion had thrown victims' remains considerable distances.
Then we discussed The Great Railroad strike of 1877
The Great Railroad Strike of 1877 reached its violent peak in Pittsburgh, where an enraged mob targeted the Pennsylvania Railroad's property between Liberty Avenue and the Allegheny River. On July 21-22, rioters burned down 39 buildings, including the Union Depot Station on Liberty Avenue and the office of Superintendent Robert Pitcairn on Penn Avenue.
The destruction was particularly severe at the railroad yards, where the mob set fire to 104 locomotives and 1,245 freight and passenger cars. The roundhouse at 28th Street, where National Guard troops had taken refuge, was also set ablaze, forcing the soldiers to fight their way out. The fires spread rapidly through the Strip District, leaving a swath of scorched earth and causing an estimated $4 million in damages to the Pennsylvania Railroad alone.
Fiat overlords are responsible for civil strife
As inflation erodes purchasing power, workers struggle to make ends meet. Wages fail to keep pace with rising costs of living, leading to increased labor unrest and strikes. These strikes, in turn, disrupt supply chains and create shortages of goods and services. The resulting scarcity further drives up prices, exacerbating the inflationary cycle and intensifying economic pressures on workers, potentially leading to more strikes.
The current strike by the International Longshoremen's Association (ILA) is a significant labor action with far-reaching consequences for the U.S. economy and global trade. Nearly 50,000 ILA members have walked off the job at East and Gulf Coast ports, marking the first such strike since 1977
The strike's impact is substantial:
It has halted operations at major ports from Maine to Texas, disrupting the flow of imports and exports.
The work stoppage affects 14 major ports along the East and Gulf coasts, effectively stopping container movement in these areas.
It's estimated that the strike could reduce U.S. economic growth by at least $4.5 billion for each week it continues.
The core issues of the dispute include:
Wages and benefits, with the ILA seeking substantial pay raises for its members.
Concerns about automation threats to jobs.
The union's demand for annual pay hikes of five dollars over a six-year contract, approximately a 10% increase each year.
The ILA argues that workers deserve compensation after shipping companies enjoyed substantial profits during the COVID-19 pandemic, even as inflation eroded wages
The union has warned of a potential broader strike involving members not directly engaged in this conflict.
The strike's timing is particularly sensitive, occurring just weeks before the U.S. presidential election and during the lead-up to the holiday shopping season
This has placed President Biden in a challenging position, as he has the authority to intervene but has indicated he does not plan to do so
As the strike continues, its effects are likely to ripple through the economy, potentially leading to shortages, increased shipping costs, and temporary unemployment for workers in related industries