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UAB economist: Dockworkers strike could negatively impact Thanksgiving, Christmas

New analysis is warning Alabamians that the decision of the International Longshoreman’s Association to strike could affect families and businesses in Birmingham and across the state during the upcoming Holiday season.

Ben Meadows, Assistant Professor of Economics at the University of Alabama at Birmingham, told WBRC 6 that if the dock workers strike has a long duration there will be cause for concern. “You can start worrying about Thanksgiving meal planning. You can start worrying about all those things.”

“If this thing goes for a long amount of time, we are going to feel those impacts here in Birmingham, Alabama,” said Meadows. “If it’s a short-term strike, we might get away with it and not notice at all.”

RELATED: Alabama Port Authority impacted by nationwide dockworkers strike, $100 million daily economic bleed expected

He explained that automated machines could help the situation, but many workers are opposed to them and see them as competition rather than a useful tool.

“Classic economics says if we give workers better tools to be more productive that will make our economy more productive overall, and overall, everything washes out. In the short run, I understand that there’s probably a lot of hesitation from not only striking workers but from many workers in America when it comes to automation because that’s perceived as a job replacement, not a job enhancer.”

 However, Meadows urged residents to remain calm.

What I want to un-doomsday-ify from this whole kind of port situation is that businesses are savvy and they will adjust if given enough time.”

With approximately 900 ILA members at the Port of Mobile the strike is already having an effect on Alabama. In the Yellowhammer State alone, the daily cost of containers idling due to the strike is estimated at $10 million.

Nationwide, these costs reach $500 million per day. Each day a ship sits at anchor costs between $80,000 and $120,000.

 Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten

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