Members of the Unite union in the British container port of Felixstowe are on strike for higher wages
(Photo: AP)
Britain goes from one strike to the next. After tens of thousands of railway workers, London Underground and bus workers walked out of work last weekend, a strike by almost 2,000 dockers began on Sunday in Britain’s largest container port, Felixstowe, in the south-east of the country. The first labor dispute in the port for 30 years is expected to last eight days and could further exacerbate supply bottlenecks in trade and industry.
The reason for the numerous strikes is the sharp rise in the cost of living, which is leading to real wage losses. Dockers from the Unite union, for example, have rejected a seven percent wage increase plus a one-time payment of £500 (€590) from their employer Felixstowe Dock and Railway Group on the grounds that it would not even offset inflation. Consumer prices in the UK rose 10.1 percent in July.
The situation is similar in other sectors. In the second quarter, real wages fell by 3 percent compared to the same period last year. This is the strongest decline in over 20 years. With an increase in nominal wages of almost five percent, wage increases were only half as high as the current inflation rate.
The container port of Felixstowe is an important hub for the British economy. Almost half of all containers shipped to and from Great Britain are handled here. In particular, deliveries of electronic goods and clothing could be delayed by the strike.
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Nevertheless, the logistics companies affected initially reacted calmly to the strike: “If the strike lasts longer than eight days, those who use the port will look for alternative routes. But for now, there are enough supplies in the supply chain. Others have already planned alternative routes – we do not expect panic,” a spokesman for transport association Logistics UK told the BBC.
The threat of recession is exacerbating the conflicts on the labor market
Employers and unions are almost irreconcilable. While workers’ organizations point to the high profits of the Hong Kong port company and parent company CK Hutchison, the companies are trying to contain their costs in the face of a looming recession.
“We have a shrinking economy, we are going into recession. I think that’s a very fair offer,” said Paul Davey, spokesman for Felixstowe Dock to Railway, of the wage offer.
More: Retail is already starting Christmas shopping – the first shipowners have to rearrange containers