For the first time since 1989, workers at the largest container port in the UK have gone on strike, prompting warnings from shipping firms and union leaders that the action would affect supply chains and make consumers wait longer for their purchases.
Approximately 1,900 Unite members in Felixstowe have left their job in a salary dispute, marking the most recent round of industrial action to affect a variety of economic sectors.
Following a vote in favour of strikes by a margin of more than nine to one, workers, including crane drivers, machine operators, and stevedores, will take action. The eight-day strike, according to the union, will have a significant effect on the port, which receives about 4 million containers annually from 2,000 ships.
As transportation workers protest for improved pay and working conditions, the strike is the most recent industrial action to negatively impact the UK economy over the weekend’s extensive disruption of rail and bus services. Workers in several sectors are battling for pay raises as a result of the ongoing cost of living problem, which has seen an increase in the cost of food and energy bills.
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The action may require ships to be diverted to ports in the UK or Europe since Felixstowe handles approximately half of the containerized freight entering the country.
A port spokesperson said: “There will be no winners from a strike which will only result in their members losing money they would otherwise have earned. Our focus has been to find a solution that works for our employees and protects the future success of the port.
“The union has rejected the company’s offer to meet again.”
According to the Guardian, Unite would be willing to attend more talks only if the company increased its pay offer above 7%.
The union has previously rejected this offer, claiming that it falls below the preferred inflation rate of 11.8% for the retail prices index (RPI), despite the fact that workers only earned a 1.4% salary raise last year. According to company statistics, Felixstowe dock employees make an average of £43,000 a year.
The port’s success and decision to distribute multimillion-pound dividends to investors have been cited by Unite. According to its most current financial statements, Felixstowe Dock and Railway Company generated a pre-tax profit of over £61 million in 2020.
Unite’s national officer, Robert Morton, told the Guardian that the port “can afford to put forward a reasonable pay offer to our members but once again has chosen not to”, adding: “That decision was driven by greed, not need.”
He added: “Unite’s door remains open for further talks but strike action will go ahead unless the company tables an offer that our members can accept.”
The Hong Kong-based company CK Hutchison Holdings, which also owns the Superdrug drugstore chain and the Three mobile phone network, owns the Felixstowe port, which has not experienced a strike since 1989.
Any protracted labour unrest at the docks would very surely cause the container port to shut down, have an effect on the UK’s supply chain, and further hurt the British economy as it prepares for a recession.
The logistics hub manages roughly 45,000 containers per week, or about 40% of the containers entering and departing the UK, carrying items such consumer goods, apparel, and canned food.
(With inputs from agencies)
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