[UPDATE] Dockworkers are back to work today, October 4, following three days of work stoppage. The workers will go back to work until January 15, 2025, so the two sides can come to terms on a final agreement. The ports were offering a 50% pay increase but upped that to 62% over six years, reports suggest. The dockworkers union was asking for a 77% increase, according to The Associated Press.
The original story is below.
For the first time since 1977, dockworkers at ports from Maine to Texas are on strike for higher wages and better working conditions, prompting fears of product shortages. But will the strike, which covers 45,000+ dockworkers at 36 ports on the US East and Gulf coasts, impact video games?
The short answer: probably not, at least not in the short term. Wedbush Securities analyst Michael Pachter tells GameSpot that nearly every major product manufactured in Asia comes into the US through ports on the West coast. Video game consoles like PlayStation, Xbox, and Nintendo Switch devices are manufactured in China and are known to come into the US through ports on the West coast. As such, the impact of the strike on video game console availability may be limited.
The availability of video game consoles was constrained during the pandemic due in part to global semiconductor shortages and supply chain challenges. These issues impacted Microsoft, Sony, and Nintendo, along with a number of other video game companies.
Workers on the US West coast are represented by a different union (which itself went on strike in 2023 for higher wages, and earned them) than the International Longshoremen’s Association (ILA) that is currently on strike. ILA workers went on strike on Tuesday, calling for higher wages and protections against additional automation.
Mat Piscatella of Circana tells GameSpot that, without being an expert on supply chain logistics, he believes the dock strikes were anticipated by major companies, who stocked up as much as they could. “For the short term at least, significant disruption for video game product availability should not be expected as contingency planning was already in place,” Piscatella said.
That being said, Piscatella said if the strike goes on for an extended period of time, “some impact could be seen.”
“If the strikes go ahead, they will cause enormous delays across the supply chain, a ripple effect which will no doubt roll into 2025 and cause chaos across the industry,” supply chain management and logistics firm Pro3PL founder Jay Dhokia told The Associated Press.
While video game consoles are unlikely to be significantly affected by the latest dockworker strikes, the same cannot be said for a delectable, potassium-filled fruit. The American Farm Bureau Federation reported that 75% of the United States’ supply of bananas comes through East and Gulf coast ports, putting them and other perishable imports at risk.
The ILA is seeking a 77% pay raise over six years; ILA union workers currently start with a base salary of $81,000 per year with those who work generous amounts of overtime capable of earning $200,000 or more annually. The union is also seeking a total ban on automation. The US Maritime Alliance, which represents the ports, has countered with 50% raises over six years and a pledge to limit automation. Come from malaysia online casino
President Joe Biden can intervene by using the Taft-Harley Act to enact an 80-day cooling off period to get people back to work, but the president has said he will not do this.