East Coast Dockworkers' Strike Could Slam Economy

Some 14,500 dockworkers are ready to walk out on strike Sunday, and it could shutter ports from Boston to Houston and choke the US economy big-time. The longshoremen are "in a crucial place in the flow of goods," says one professor; New York and New Jersey officials say a strike could drain the region to the tune of $110 million in economic output and $136 million per week in personal income, the New York Times reports.

The International Longshoremen's Association is fighting the United States Maritime Alliance, a trade group, over what are known as "container royalty payments." Those payments, in place since the 1960s, amount to about $10 per hour for the workers. The Maritime Alliance holds that the longshoremen make some $124,000 a year, including benefits, while the union says members make more like $75,000, though that doesn't include benefits. "Unless something miraculous happens, I think we’re looking at a strike," says a clothing industry rep. Some 100 industry organizations aren't taking that threat lightly, and have called on President Obama to push for a settlement; the White House weighed in on Thursday. (More International Longshoremen's Association stories.)