The possibility of an interruption at the port that handles about half of the nation’s container traffic will send shivers through the supply chain, triggering a repetition of last year’s catastrophic cargo backlogs.
A union has announced preparations for a strike at the largest container port in the United Kingdom next month, which it claims will bring operations to a halt.
Unite issued the warning while disclosing the results of a vote among its members at Felixstowe, which were ultimately hired by the international port operator CK Hutchison.
The union reported that 92 percent of workers supported industrial action over pay, based on an 81 percent turnout.
Unite stated, “The issue stems from the Felixstowe Dock and Railway Company’s offer of a 5 percent pay raise to its employees.”
Effectively, this is a salary cut, as the real rate of inflation (as measured by the RPI) is currently 11.9%.
The labor force obtained a 1.4% salary increase below inflation last year.
The proposed action, which Unite anticipated would begin the next month in the absence of significant progress in settling the dispute, is part of a larger union push for pay settlements to safeguard its members from the cost of living issue.
There have already been rail and Tube strikes, with the possibility of additional travel disruptions to come.
Felixstowe has yet to react, but the possibility of operations halts would have disastrous implications on the UK supply chain, as the port handles nearly half of the nation’s container cargo.
It is also no stranger to disruptions, as a shortage of HGV drivers caused backlogs before Christmas last year.
CK Hutchison, headquartered in Hong Kong, is one of the world’s largest container terminal and port service operators.
Sharon Graham, general secretary of Unite, stated, “This is an enormously affluent firm that can afford to provide its employees a raise.”
“Instead, it elected to give stockholders payouts above £100 million.
“Unite is committed to safeguarding the employment, wages, and working conditions of its members, and we will give our people at Felixstowe our full support.
“Workers should not suffer a pay drop as a result of the pandemic.
“In a couple of months, Unite has engaged in 360 disputes, and we will do all in our ability to defend workers.”
No precise dates have been given for the anticipated action.
