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British shops could see gaps on shelves for months after a huge strike at the UK’s biggest container port, it’s claimed.
Around 1,900 members of the Unite union at Felixstowe are walking out for eight days in a dispute over pay – a move ‘estimated to impact £700 million worth of trade’.
Disruption to supermarkets such as Asda, Tesco and Marks & Spencer, and manufacturing companies like Rolls-Royce and Jaguar Land Rover, could even go until Christmas, a new report from The Times suggests.
Clothing and electronics goods will be hit the hardest, an analysis by trade consultancy Russell says.
There is said to fear the shortages ‘could lead to even higher prices’ as the UK already faces a cost of living crisis.
As the Unite strikes launched yesterday, Maersk, one of the world’s largest container shipping groups, diverted three ships to alternative ports in Europe.
A statement from Maersk said: ‘We expect the strike action to have a significant impact to the vessel line-up and are working along with vessel partners to mitigate risk and disruption as much as possible’
Experts at Russell said the strikes could increase congestion at ports around the world, which are already experiencing a backlog from the Covid pandemic.
The situation comes as transport workers, Royal Mail employees and bin workers all launch strikes over pay – and teachers could be next.
Unite has already warned the walkouts will have a big impact on the port, which handles around four million containers a year from 2,000 ships and takes goods from 700 ports across the globe.
Felixstowe bosses say their offer of a 7% pay rise plus a £500 lump sum is ‘very fair’, as inflation hits double figures for the first time in more than 40 years.
But Unite’s General secretary Sharon Graham says Felixstowe docks made £61 million in profits in 2020, while parent company, CK Hutchison Holding Ltd, is ‘so wealthy, it handed out £99 million to its shareholders’.
‘So they can give Felixstowe workers a decent pay raise. It’s clear both companies have prioritised delivering multimillion-pound profits and dividends rather than paying their workers a decent wage’, she said.
‘Unite is entirely focused on enhancing its members’ jobs, pay and conditions and it will be giving the workers at Felixstowe its complete support until this dispute is resolved and a decent pay increase is secured.’
The union’s national officer Robert Morton has said businesses affected by action at Felixstowe should get in contact with the port’s parent company and urge them to return to the negotiating table.
However, one logistics executive has insisted the supply chain is ‘resilient’ following numerous Covid lockdowns.
‘Felixstowe doesn’t do fast-moving perishable foods or bulk commodities like grain, so we aren’t going to see gaps on supermarket shelves next week’, they said.
‘We have seen worse during the pandemic supply chain issues. The supply chain has become more resilient and goods will divert to other UK ports, while high-value goods will transfer to air freight.’
Meanwhile, a port source previously said the strikes will be an ‘inconvenience not a catastrophe’, agreeing that the supply chain was now used to disruption following the pandemic.
He also suggested that some suppliers of white goods such as fridge freezers might actually welcome a break because of slower sales due to the cost-of-living crisis.
A spokesperson for Felixstowe said: ‘The port regrets that Unite has walked away from pay negotiations and announced strike action from August 21 to 29.
‘We believe the offer of 7% plus a £500 lump sum was very fair in the prevailing economic climate.
‘The company is disappointed that Unite has not taken up our offer to call off the strike and come to the table to find a resolution. The port regrets the impact this action will have on UK supply chains.’
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