Since 1977, dockworkers from Maine to Texas haven’t gone on strike until now, seeking better pay and working conditions, and people are worried about product shortages.
But what about video games? It seems like there’s not much to worry about for now. Michael Pachter, an analyst from Wedbush Securities, mentioned that most big products from Asia, like PlayStation, Xbox, and Nintendo Switch, enter the US through West coast ports. These consoles come from China and aren’t likely to be affected much by the East and Gulf coast port strikes.
Back during the pandemic, getting video game consoles was tough due to a lack of semiconductors and other supply chain problems, which gave trouble to companies like Microsoft, Sony, and Nintendo.
On the West coast, another union, different from the International Longshoremen’s Association (ILA) that’s currently striking, went on strike in 2023 and secured higher wages (here’s more about that). The ILA started their strike on Tuesday, asking for more pay and protections against automation.
Mat Piscatella from Circana thinks big companies expected the strikes and stocked up beforehand, so video game availability shouldn’t suffer much in the short run. “For the short term at least, significant disruption for video game product availability should not be expected as contingency planning was already in place,” Piscatella stated.
However, if the strike drags on, “some impact could be seen,” he warned.
Jay Dhokia, founder of Pro3PL, told The Associated Press that if the strikes continue, we might see delays ripple through the supply chain, causing chaos until 2025.
While video games seem safe for now, bananas might not be so lucky. A whopping 75% of bananas in the US come through these striking ports, so fans of this yellow fruit might want to stock up.
The ILA is aiming for a big 77% pay hike over six years. Currently, they start at $81,000 a year, and with lots of overtime, some make over $200,000. They also want to stop automation completely. On the other hand, the US Maritime Alliance has offered a 50% raise over six years and promises to limit automation.
President Joe Biden has the option to use the Taft-Hartley Act to pause the strike for 80 days, but he’s decided not to do so.
