Major Union Strikes Impacting U.S. Economy: A Comprehensive Breakdown
By Mrinalika Roy
(Multibagger) - The first significant strike by dockworkers on the U.S. East and Gulf coast in 50 years has halted the flow of goods, from food to automobiles, underscoring the growing strength of unions in America since last year.
Key Union Actions in 2023-2024: A Sector-by-Sector Analysis
Logistics Sector
- International Longshoremen's Association Strike: On October 1, members of the International Longshoremen's Association (ILA) walked out from 36 East and Gulf Coast ports after contract negotiations with the United States Maritime Alliance failed. These ports handle 57% of U.S. container volume, potentially costing the economy billions daily.
- Teamsters and UPS: In August 2023, Teamsters union workers at United Parcel Service (NYSE: UPS) ratified a new five-year contract, averting a strike.
- FedEx Pilots' Stalemate: FedEx (NYSE: FDX) pilots have been in a standoff with the company over wages and pensions since May last year.
Airlines & Aerospace
- Boeing Workers Strike: Over 32,000 Boeing (NYSE: BA) employees in Seattle and Oregon went on strike on September 13, seeking a 40% pay rise and reinstatement of a defined-benefit pension.
- Airline Pilots' New Contracts: Pilots at American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Spirit Airlines (NYSE: SAVE), and JetBlue Airways (NASDAQ: JBLU) negotiated new job contracts in 2023.
- Spirit AeroSystems Work Stoppage: A week-long halt at Spirit AeroSystems' Kansas plant ended in June 2023 with a new contract.
Automotive Industry
- Big Three Automakers and UAW: General Motors (NYSE: GM), Ford (NYSE: F), and Stellantis (NYSE: STLA) reached deals with United Auto Workers (UAW) in November 2023. Additionally, about 3,900 UAW members at Mack Trucks ratified a new five-year contract in November, ending a month-long strike.
Media Sector
- Writers Guild of America: WGA members approved a new three-year contract with major studios on October 9, 2023, after striking in May over compensation issues.
- Hollywood Actors: Hollywood actors reached a tentative agreement with studios on November 8, 2023, to end strikes over higher pay in the streaming era.
Steel Industry
- Cleveland-Cliffs Agreement: U.S. steel producer Cleveland-Cliffs (NYSE: CLF) reached a tentative agreement with United Steelworkers in August 2023 for its Northshore mining operations.
Consumer & Retail
- Las Vegas Casino Workers: Thousands of workers reached agreements with Caesars (NASDAQ: CZR), MGM Resorts (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN) in November 2023, avoiding strikes.
- Detroit Casino Council: A tentative agreement was reached in November 2023 for 3,700 workers at MGM Resorts, Penn, and MotorCity Casino, following the Council’s first-ever strike.
- Starbucks Strikes: Over 3,000 workers at more than 150 Starbucks (NASDAQ: SBUX) stores struck in June 2023 over banned Pride Month decorations, with further walkouts in November over staffing.
- LA Hotel Staff: Thousands of Los Angeles-area hotel staffers went on a three-day strike in July 2023 over wages and benefits.
Healthcare Sector
- NYC Nurses Strike: Over 7,000 nurses in New York City went on a three-day strike in January 2023 over staffing and pay.
- Kaiser Permanente Contract: Healthcare workers ratified a new contract on November 9, 2023, following the largest recorded strike in the U.S. medical sector.
- CVS Health and Walgreens Walkout: Workers held a three-day walkout in October 2023 over working conditions and staffing.
Energy Sector
- Marathon Refinery Walkout: Over 200 Teamsters members at Marathon's Detroit refinery walked off the job on September 4, 2024, after stalled negotiations.
- Phillips 66 Agreement: Unionized workers at Phillips 66 (NYSE: PSX) ratified a contract in late-stage negotiations, averting a strike in September last year.
---
What Does This Mean for You?
Understanding these labor movements is crucial, as they can significantly impact the prices and availability of goods and services you rely on daily. For instance, port strikes can disrupt the supply chain, leading to higher prices for consumer goods. Strikes in the automotive and airline industries can lead to costlier car purchases and flight tickets. Healthcare strikes might affect the quality and speed of medical services.
Being aware of these dynamics helps you make informed decisions about your spending, investments, and career choices. For example, investing in companies with strong labor relations or diversifying your stock portfolio can mitigate some of the risks associated with these industries.
Stay informed, plan ahead, and adjust your financial strategies accordingly to navigate the economic ripple effects of these labor movements.