A dockworkers’ strike is set to shut down ports across much of the US indefinitely, threatening significant trade and economic disruption ahead of the presidential election and the busy holiday shopping season.
Tens of thousands of members of the International Longshoremen’s Association (ILA) are preparing to walk out on Tuesday at 14 major ports along the east and gulf coasts, halting container traffic from Maine to Texas.
Barring a last-minute intervention, the action will mark the first shutdown in almost 50 years.
President Joe Biden has the power to suspend the strike for 80 days for further negotiations, but the White House has said he is not planning to act.
What is the strike about?
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The two sides are fighting over a six-year master contract that covers about 25,000 port workersemployed in container and roll-on/roll-off operations, according to the US Maritime Alliance, known as USMX, which represents shipping firms, port associations and marine terminal operators.
Talks have been stalled for months and the current contract between parties expires on Monday.
Union boss Harold Daggett has called for significant pay increases for his members, while voicing concerns about threats from automation.
Under the previous contract, starting wages ranged from $20 to $39 per hour, depending on a worker’s experience. Workers also receive other benefits, such as bonuses connected to container trade.
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Mr Daggett has indicated the union wants to see pay increases of five dollars per year over the life of the six-year contract, which he estimated amounted to about 10% per year.
The ILA, which says it represents more than 85,000 people, said workers are owed after shipping firm profits soared during the Covid pandemic, while inflation hit salaries. It has warned to expect a wider strike of its members, including those not directly involved in this dispute, though the figures are unclear.
USMX has accused the union of refusing to bargain, filing a complaint with labour regulators that asked them to order the union back to the table.
What items will be affected by the strike?
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Time-sensitive imports, such as food, are likely to be among the goods first impacted.
The ports involved handle about 14% of agricultural exports shipped by sea and more than half of imports, including a significant share of trade in bananas, chocolate and coffee imports, according to the Farm Bureau.
Other sectors exposed to disruption include tin, tobacco and nicotine, Oxford Economics said. Clothing and footwear firms, and European carmakers, which route many of their shipments through the Port of Baltimore, will also take a hit.
Imports in the US surged over the summer, as many businesses took steps to rush shipments ahead of the strike.
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“I don’t think we will see immediate, significant economic impacts…but over the course of weeks, if the strike lasts that long, we can begin to see prices rise and for there to be some shortages in goods,” said Seth Harris, a professor at Northeastern University and a former White House adviser on labour issues.
What will the economic impact be?
More than a third of exports and imports could be affected by the strike, hitting US economic growth to the tune of at least $4.5bn each week of the strike, according to Grace Zemmer, an associate US economist at Oxford Economics, though others have estimated the economic hit could be higher.
She said more than 100,000 people could find themselves temporarily out of work as the impact of the stoppage spreads.
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“This is really a trigger event, one that will see dominoes fall over the coming months,” said Peter Sand, chief analyst at ocean freight analytics firm Xeneta, warning that the stand-off also has the potential push up wider shipping costs.
That would hit consumers and businesses which tend to rely on so-called “just-in-time” supply chains for goods, he added.
How could this affect the US election?
The stand-off injects uncertainty into the US economy at a delicate time.
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The economy has been slower and the unemployment rate is ticking higher as the US election approaches in six weeks.
The strike risks putting President Biden in a tricky spot.
US presidents can intervene in labour disputes that threaten national security or safety by imposing an 80-day cooling-off period, forcing workers back on the job while negotiations continue.
In 2002, Republican President George W Bush intervened to open ports after 11 days of a strike action by dockworkers on the west coast.
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The US Chamber of Commerce business group has called on President Biden to take action.
“Americans experienced the pain of delays and shortages of goods during the pandemic-era supply chain backlogs in 2021. It would be unconscionable to allow a contract dispute to inflict such a shock to our economy,” said Suzanne P. Clark, president and chief executive of the business group.
The ILA’s Mr Daggett endorsed Democrat Biden in 2020, but has been critical of the president more recently, citing pressure on west coast dockworkers to reach a deal a year ago. He met with Donald Trump in July.
Although any strike chaos is likely to hurt Democrats, the cost of alienating allies in the labour movement just weeks before the election would be greater, said William Brucher, a professor of labor studies and employment relations at Rutgers University.
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But public support of strikes could be tested by the dispute, which has been championed by Mr Daggett, who was acquitted of having links to organised crime in a 2004 case by federal prosecutors. A related civil suit remains unresolved.
Films such as the 1954 classic On the Waterfront once defined the dockworkers union’s image, but Prof Brucher said he thought that historical memory had largely faded and many people shared the dockworkers’ concerns about cost-of living and automation.
“As much as it could sway public opinion against the ILA, a strike by ILA members is their decision and I don’t think they will be swayed by public opinion in any meaningful way,” he said.
“What is more likely to happen is the pressure of a strike will likely force the employers back to the table with a much more substantial offer.”
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Billionaires (sometimes) do not let billionaires go bankrupt. For a price, at least.
For a year, some Wall Street vultures dreamt that EchoStar — the satellite TV and telecoms empire assembled by Charlie Ergen — would fall into Chapter 11.
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That would have handed control to its creditors, owning more than $20bn of EchoStar debt.
But on Monday, David Bonderman decided to play white knight. The private equity firm he co-founded, TPG Capital, said it would lead a rescue transaction that keeps Ergen’s EchoStar equity afloat.
TPG’s satellite TV provider, DirecTV, will acquire its arch-rival Dish Network from EchoStar. The official purchase price is $1, along with assuming billions in Dish’s currently distressed debt.
TPG, however, will not make those bondholders whole, conditioning the DirecTV/Dish merger on $11.7bn of bond debt taking a $1.6bn haircut. Those bondholders can decline if they like.
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But the bet by Ergen and TPG is that those creditors can live with a modest discount to avoid having to run a complicated business that is in decline. As it happens, the hand of those main bondholders had already been forced.
Nearly all holders of convertible bonds, who are owed around $5bn in principal due soon, agreed to swap their debt at a small discount in exchange for a better coupon, enhanced collateral and the chance to reinvest in EchoStar.
TPG’s bargain contains its own risks. It is providing $2.5bn in the form of debt to solve pending maturities at Dish. It also said on Monday that it would pay $7.6bn over the next several years to buy out AT&T from the 70 per cent of DirecTV still owned by its telecoms partner.
The combined company will have 18mn pay-TV subscribers, a deterioration of several million in the past decade. But private equity firms care more about cash flow than revenue growth.
The combined company retains almost $10bn of annual ebitda, according to researcher CreditSights, setting its likely enterprise value between $30bn and $40bn. TPG’s risk is largely mitigated by investing at a cheap valuation, and the cash it has and will continue to extract.
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Ergen will now concentrate on the EchoStar stub, which is a portfolio of spectrum and a play on building a new mobile phone network.
Its shares fell by more than a tenth on Wednesday, a personal loss for Ergen of a few hundred million dollars. But it could have been far worse, if not for the intervention of Bonderman & Co.
DESPITE it only being September, it was hard to not feel the magic of Christmas standing inside Hamleys’ Christmas Grotto.
I’d been invited down to get a sneak peek of all the toys the iconic children’s retailer expects to fly off the shelves this festive season, and walking into the showcase, I knew it would be magical.
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This singing Moana doll is expected to be a smash hit
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This Stitch plush makes noises and laughs when you shake it
With the holidays less than 100 days away, families may already be overwhelmed trying to figure out what the little ones in their life hope to find under the tree.
But Victoria Kay, head of buying and merchandising Hamleys, reckons toys influenced by children’s films are going to be a big hit this year.
This will probably not come as a surprise to parents.
And this Christmas appears to be no different, with a singing Moana doll poised to a fan favourite amongst kids.
Disney will release the sequel to the smash hit film, which follows the journey of a Polynesian princess who sets off on a quest to save her people, at the end of November.
The new Moana doll comes with her own necklace that plays a rendition of Moana’s Disney classic ‘How Far I’ll Go’ every time they press it.
It is recommended for children aged three and up and if you buy it at Hamleys it will set you back £29.99.
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If you are hunting for a bargain, Amazon is selling the same doll for £23.49, but you’ll have to factor in delivery costs.
On the same Disney theme, Hamleys also predicts a laughing Stich soft toy will be a success this Christmas.
The 11-inch-high interactive blue alien is activated by a simple shake which then prompts the character to giggle and wobble.
It comes as a new live-action Lilo and Stich is set to land in cinemas next year, over two decades on from the first movie.
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Hamleys is charging £24.99 for the plush, which is about four quid cheaper than Amazon’s asking price.
L.O.L Surprise Dolls are available to buy at Hamleys for £9.99
Money will still be tight for many families this Christmas, so I was happy to see that one of Hamleys top toys cost just under £10.
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L.O.L Surprise Mermaid Tots are the latest take on the ever-popular L.OL Dolls.
Children can make each of them a tail which changes colour when it is dipped in water.
If the kids in your life enjoy surprise or mystery boxes then they could enjoy this, as you don’t know what the doll will look like until you open the box.
Hamleys is charging £9.99 for the product, which is on par with John Lewis and Very who are also stocking the toy.
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The retailer is also selling a selection of large plush toys shaped like cupcakes or chips for £22.
If your children like Squishmallows, then this would be a big hit.
However, if you are looking for a bargain, Dunelm is also selling a selection of similar products for £10.
Keeping it classic
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LEGO Bumblebee for adults aged 18+
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This Hulk smash toy costs £16.99
Nothing screams Christmas like stepping on a piece of Lego, so I was pleased to see this classic find a spot on the list.
Hamleys reckons a £80 LEGO Transformer Bumblebee will also be a hit this year.
The item is considered a collectable item for lovers of the sci-fi series and is only suitable for those aged 18.
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This is because it could be a challenge to stick together.
A Play-Doh Hulk Smash and Squish is also expected to be in high demand.
It comes with the heroic green bendy action figure, 360-degree pressing tool and three moulds to create tanks, trucks and other shapes.
This will cost £16.99 at Hamleys, which is the same price as Smyths Toys.
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You can check out the other toys Hamleys expects to be a smash below.
Numberblocks Five Musical Superstar Stage
Cost: £49.95
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This is an educational toy for pre-school children
An interactive musical playset allows children to join FIVE, the lead singer in the band to singalong to songs and sound effects.
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Hamleys appears to be the only UK retailer currently stocking the toy.
The Bulldozer Stunt Bounce Car
Costs £45
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This electric car costs £45
This is also only available to buy at Hamleys and is suitable for children aged eight and up.
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The remote control vehicle has lights, three-gear acceleration and a 360-degree rotation and 180 -degree flip modes.
Paw Patrol Rescue Wheels Deluxe Vehicle
Costs: £44.99
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Paw Patrol Rescue Wheels Dulexe is available to buy for £44.99
This toy truck comes with one of Paw Patrol’s most loved characters, Chase.
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The toy features flashing lights and sounds, as well as a projectile launcher.
If you are on the hunt for a bargain, The Entertainer is currently selling the same product for £17.99.
The retailer has over 160 stores across the UK and is also available online.
Drop Trivia Game
Costs £24.99
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Drop Trivia costs £24.99 at Hamleys
This game is suitable for children aged six and above and asks players to answer questions quickly.
It is currently out of stock at other toy retailers such as Smyths and The Entertainer.
The Terror Fried Gross Bucket
Costs £29.99
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The figures are from the TerrorFried franchise
This is a set of nine collectable figures from the TerrorFried franchise.
Other retailers such as Smyths, Very and Selfridges are also stocking this product for the same price as Hamleys.
Hamleys Arias Allessandra Fur White Bonnet Baby Doll
Costs £120
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This pricey doll is supposed to feel like a real baby
This pricey doll has a soft-touch body and limbs and a lifelike weight so it feels like you are holding a real baby.
She comes with a romper and fleece, a dummy on a wooden chain, a family book and Certificate of Authenticity.
The product is only available to buy at Hamleys.
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How to bag a bargain
SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain…
Sign up to loyalty schemes of the brands that you regularly shop with.
Big names regularly offer discounts or special lower prices for members, among other perks.
Advertisement
Sales are when you can pick up a real steal.
Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.
Sign up to mailing lists and you’ll also be first to know of special offers. It can be worth following retailers on social media too.
When buying online, always do a search for money off codes or vouchers that you can use vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.
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Scanner apps are useful to have on your phone. Trolley.co.uk app has a scanner that you can use to compare prices on branded items when out shopping.
Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.
And always check if you can get cashback before paying which in effect means you’ll get some of your money back or a discount on the item.
A 10% domestic gas and electricity price rise has taken effect as debate continues over the withdrawal of additional support.
A household in England, Wales and Scotland using a typical amount of gas and electricity will pay £1,717 a year from now, a rise in the annual bill of £149.
It comes as winter approaches without extra cost-of-living payments for those on low incomes, and as winter fuel payments are withdrawn for about 10 million pensioners.
Energy firms say they are helping struggling and vulnerable customers.
Price cap changes
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Energy prices for about 27 million homes in England, Wales and Scotland is governed by a price cap, calculated by the energy regulator Ofgem. It is set every three months and affects the price paid for each unit of gas and electricity.
Under the cap, prices have fallen twice this year – in April and July – but now, at the start of October, they have increased by about £12 a month for a typical user.
A final bill depends on the amount of energy used, but to calculate the effect on an annual bill, billpayers can add 10% to their current bill.
Standing charges have risen by one penny a day for gas and also for electricity, but the regulator is considering reforming the system.
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The price cap is illustrated by Ofgem in terms of an annual bill for a household using a typical amount of gas and electricity.
That annual bill is lower than last winter, but charities say many people will struggle to cover the cost.
Some households have built up debt to their suppliers. Ofgem said nearly £3.7bn is owed collectively.
Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said: “This only highlights what we have been saying for some time – without urgent support for households facing unaffordable arrears, energy debt will only rise further.”
Some households will have less support because the final cost-of-living payment was made to eight million people on means-tested benefits in February.
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For pensioners, the previously universal winter fuel payment, worth up to £300, will now only be paid to those on low incomes who receive certain benefits.
The payment is a devolved matter in Scotland and Northern Ireland and the Scottish government confirmed it will also no longer provide winter fuel payments to all pensioners.
While some previous recipients say they do not need it, charities and many MPs are concerned about pensioners still on a relatively small income who will miss out.
Forecasters have given some comfort with a change to their prediction for energy bills when the next cap comes into force in January.
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Consultancy Cornwall Insight, which analyses the sector, has predicted a 1% fall in January to an annual bill of £1,697 for a household using a typical amount of energy.
Energy companies have said a voluntary initiative they have run in the last four years has identified vulnerable customers.
The sector’s trade body, Energy UK, said extra support totalling £500m had been given to those in need.
In specific terms, the latest change in prices means:
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Gas prices are capped at 6.24p per kilowatt hour (kWh), and electricity at 24.5p per kWh – up from 5.48p and 22.36p respectively. A typical household uses 2,700 kWh of electricity a year, and 11,500 kWh of gas
Households on prepayment meters are paying slightly less than those on direct debit, with a typical bill of £1,669
Those who pay their bills every three months by cash or cheque are paying more, with a typical bill of £1,829
Standing charges – a fixed daily charge covering the costs of connecting to a supply – have gone up to 61p a day for electricity and 32p a day for gas, compared with 60p and 31p respectively, although they vary by region
How some pensioners can claim support
Hundreds of thousands of low-income pensioner households eligible for pension credit currently fail to claim it.
The government says it is worth an average of £3,900 a year and claiming it can qualify people for other financial support such as winter fuel payments.
The legislation — set to be published next month — will strengthen union powers.
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It will make changes to zero-hours contracts, probationary periods and guarantee employees rights from day one as well as default flexible working.
THE SUN SAYS… JUST DESSERTS
WHY did it take so long for politicians to ensure that tips go in full to the low-paid waiting staff who deserve them?
And that restaurants and hair salons can no longer snaffle credit card gratuities? That’s in the past, as of today . . . a great day for workers and for fairness.
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Some places may sneakily raise prices to recoup lost income.
Top tip for them — don’t. Customers would soon vote with their feet.
Inside Keir Starmer’s new Labour Cabinet – from firebrand Angela Rayner to secret ‘Tory assassin’
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The stories that matter on money and politics in the race for the White House
More than 100 people have been killed and as many as 600 people are missing after Hurricane Helene ripped through the south-eastern US, causing widespread destruction and flooding, the White House said.
The rising death toll emerged as the Biden administration and local officials struggled to deliver support to the most affected states, stretching from Florida to Georgia and North Carolina, where tens of thousands of survivors have been stranded without electricity or running water.
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The devastation hit with little more than a month until the US presidential election that pits Kamala Harris, the Democratic vice-president, against Donald Trump, the Republican nominee and former president.
Trump rushed to southern Georgia on Monday to speak about the hurricane’s impact, while Harris returned to Washington DC, from a trip to the west coast to receive a briefing from federal emergency response officials.
Speaking from the White House, President Joe Biden vowed to deliver all the help that the government could to the communities hit by the storm, in co-ordination with local governors. He also said he expected to request additional disaster relief funding from Congress.
“We’re not leaving until the job is done,” Biden said. “We will be there as long as it takes.”
Biden said he expected to visit the region later this week, but only after it was clear that the arrival of the president and his entourage would not disrupt the operations of the first responders.
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US officials said many communities hit by the storm were isolated so the extent of the damage remained unknown.
Speaking in Georgia on Monday, Trump blamed Biden and Harris for the struggles of the storm victims, saying the response had been slow.
“The governor is doing a good job,” Trump said, referring to Georgia Republican governor Brian Kemp. “But he’s having a hard time getting the president on the phone. They’re being very non-responsive.”
But Kemp had no complaints about the administration’s reaction. “The president just called me yesterday afternoon . . . and he just said ‘Hey, what do you need’,” he told reporters. “[Biden] offered that if there’s other things we need, just to call him directly, which I appreciate.”
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Biden did not estimate how much additional funding he would request from Congress for the response to the storm, but lawmakers would have to be called back from the pre-election recess to vote on the aid.
Conservative Republicans have at times objected to federal funding for disaster relief, or insisted the money be offset by spending cuts elsewhere, which could complicate its passage.
SHOPPERS are racing to their nearest bargain supermarket to scoop up Oreo cheesecakes scanning at the till for just 49p after its price was slashed from £2.49.
The savvy customer shared their find on Facebook, receiving hundreds of likes and comments from fellow Oreo fans eager to get their hands on the sweet treat.
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A savvy shopper posted the bargain find on FacebookCredit: Facebook
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The price was slashed from £2.49 to just 49pCredit: Alamy
SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain…
Sign up to loyalty schemes of the brands that you regularly shop with.
Big names regularly offer discounts or special lower prices for members, among other perks.
Sales are when you can pick up a real steal.
Advertisement
Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.
Sign up to mailing lists and you’ll also be first to know of special offers. It can be worth following retailers on social media too.
When buying online, always do a search for money off codes or vouchers that you can use vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.
Scanner apps are useful to have on your phone. Trolley.co.uk app has a scanner that you can use to compare prices on branded items when out shopping.
Advertisement
Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.
And always check if you can get cashback before paying which in effect means you’ll get some of your money back or a discount on the item.
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