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WASHINGTON (TND) — Tens of thousands of dockworkers along the U.S. East and Gulf Coasts are threatening to strike on October 1. It's a move that would shut down ports that handle about half of the nation's cargo from ships.
Jason Miller, a professor of supply chain management at Michigan State University said the International Longshoreman's Association is looking for pay increases of around 77-78%.
'That is far higher than the roughly 32-39% that have been offered," Miller said.
Miller said the union is also demanding automation gets kept the way it is.
"Because it views automation as a threat to jobs," said Miller.
If a strike does happen, over 40,000 dockworkers will walk off the job. Miller said this is concerning since those ports process between 50-60% of the goods that come into the United States.
This is millions upon millions of tons of freight," said Miller.
This includes auto parts, a specific industry Miller believes will significantly feel the effects of a strike.
"The German automakers with operations in the southern United States, they're importing a lot of components from their suppliers in Germany," said Miller.
Piyush Shah, a professor who also focuses on supply chain management said aside from the auto industry, these ports also handle a lot of agriculture and poultry.
"These time-sensitive cargo, we might see a lot of damages," Shah said.
Plus, Shah said imports from Europe like wines, spirits, beer and certain chemicals could be impacted as well.
"All European imports are more in danger than the Chinese," said Shah.
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