Federal mediation services will be provided to both sides in a dockworkers-vs-employers dispute all along the U.S. East Coast. If the mediation fails and the workers go on strike, it would be their first strike in 35 years.

Employers are already predicting dire consequences if the workers go on strike. A strike could severely affect the flow of consumer goods that are bound for stores for the Christmas season.

What's at Stake During the Civil Mediation

The union represents about 14,500 dock workers, and just over 8,000 of those would be directly affect by the strike. Over 100,000 workers with related jobs would be affected as well.

Workers want better pay, while management wants to put a cap on certain production bonuses, while increasing productivity by implementing new technology.

The union is accusing management of raising new issues and fostering a “take-it-or-leave-it” uncompromising attitude. Talks had been going well since March, and were expected to have finished long before now. The contract between management and labor expires at the end of September.

If the parties fail to meet a mutual agreement by then, dock workers all along the coast may go on strike. How would this affect the U.S. economy at multiple levels. How is that?

What Happens if Mediation Services Fail?

Such labor action would slow down shipping of goods right about the time that they are needed to ship for the holiday season. There are simply so many consumer goods shipped to the U.S. via the East Coast, that it could have a major impact on our economy.

Many shippers are already planning to use the West Coast instead. In fact, a whopping 15% of the East Cost's volume is about to be sent to ports on the West Coast.

But even that has its limits. Storehouses and rails can only handle so much extra capacity. Those shipping lines could become clogged in very short order.

The Importance of the Port at Baltimore

One of the most significant ports that would be affected by the strike would be the one in Baltimore, Maryland.

Baltimore is the biggest port for receiving all kinds of imports, such as construction and farm machinery, light trucks and other small automobiles, imported iron ore, gypsum, and sugar, and imported forest products.

It takes the second-largest amounts of imported salt and aluminum, and is also the second-largest exporting port for U.S. coal.

To find the right mediator, see our list of Maryland mediation attorneys.