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Potential port strike creating some economic angst

A Creighton University economist says there are concerns Atlantic and Gulf Coast port workers could strike again in mid-January.

Ernie Goss tells Brownfield a tentative agreement reached in early October by the International Longshoremen’s Association and the United States Maritime Alliance, Ltd expires Jan. 15.

“They’re seeking anywhere between 60 and 70% wage increase over a five year period. The big concern from an economic standpoint is they’re attempting to get a reduction in automation,” he says.

He says economists are looking for increased productivity growth in the already stagnant agricultural and manufacturing sectors.

“In terms of agriculture, a lot has to do with agricultural commodity prices, of course. In the manufacturing sector, weaker exports,” he says. “The global economy remains fairly weak, and we’re certainly seeing the strong dollar not helping out in any way, making our goods less competitively priced abroad, and that’s taking some wind out of sales.”

Goss says there’s additional uncertainty with the new Trump administration.

“He’s coming in there with both guns a blazing, talking about tariffs, bringing jobs back to the U.S. and at the same time deporting individuals, some of whom are working now,” he says. “In terms of deporting those who are not working in this economy, that, of course, has less of an impact, but deporting those individuals who are taking down jobs in the U.S. would have some negative impacts, at least in the short run.”

Goss says it could create additional pressure on the food processing industry, which he says is also being impacted by automation.

Earlier this week, Tyson Foods announced it would be shuttering its Emporia, Kansas plant in February to increase operational efficiency.  

AUDIO: Ernie Goss, Creighton University