Significant strikes in 2024, such as the Amazon workers' and the dockworkers’ strikes, are preparing retailers for 2025, which could be challenging. With the resurgence of powerful labor unions, these two strikes of 2024 are worrying retailers as they portend supply chain delays and rising prices for 2025. 

Amazon Strike

Between Black Friday and Cyber Monday of 2024, Amazon workers in more than 20 countries, including the U.S., went on strike. The strike aimed to target one of the biggest shopping weekends of the year to raise awareness of what the Amazon workers describe as "anti-worker practices." 

Following the Black Friday/Cyber Monday action, Amazon facilities in New York City, Illinois, California, and Atlanta faced disruptions as delivery workers threatened to picket right through the holidays. It was one of the most significant strikes in Amazon's history, and no one was sure how long it would last.

This strike affects Amazon's logistics network, threatening delays in order processing, shipment, and delivery. Electronics—like gaming consoles and smartphones—are especially vulnerable as demand surged during holiday shopping.

This is the fifth year demonstrations over the busy holiday shopping weekend have been called to hold Amazon accountable for working conditions. In 2023, Amazon represented 18 percent of the worldwide Black Friday sales, with more than $170 billion in holiday sales.

Dockworkers Strike

In October of 2024, dockworkers from Maine to Texas walked picket lines, hoping to bring attention to their complaints over wages and automation. Affecting 36 ports along the East and Gulf Coasts, the strike disrupted supply chains, led to a temporary shortage of goods, and caused panic about price increases. Like the Amazon protests, this strike was particularly worrying to electronics retailers who are reliant on imports. 

Fortunately, the strike only lasted three days, but it did halt the flow of imported goods and caused delivery backlogs that took weeks to be cleared. Had it gone on longer, the work stoppage could have significantly impacted supply chains, caused higher prices, and resulted in goods arriving late for the holiday shopping season. The worry was that the damage would roll into 2025. J.P. Morgan estimated that a prolonged strike like this could cost the economy $3.8 billion to $4.5 billion daily. 

Both of these strikes—Amazon and dockworkers—indicate that labor disputes are becoming more regular. Experts warn that more could be coming in 2025 if unresolved issues remain. The International Longshoremen's Association only agreed to a temporary contract extension through January 2025.

The Price of Uncertainty

Delays in product availability and increased costs are the concerns caused by the strikes that worry retailers. Basic economics tells us that supply shortages raise costs. The supply chain disruption evidenced by these stoppages increases shipping costs and rerouting expenses, usually passed on to consumers. The Chamber of Commerce adds that prolonged labor disruptions could cause inflation, which would show up in electronics.

The upside for shoppers in 2024 was that due to the strikes, retailers bulked up on their supplies, which meant more goods pushed down costs during the holiday season. However, as these inventories go down and new shipments face possible delays, the fear is that prices will rise significantly in early 2025.

Temporary Staffing

With all this worrying going on, one way to calm fears is to look at temporary staffing to mitigate stoppage problems. One benefit of reliable staffing agencies is that they can keep supply chains operational during labor negotiations. Skilled temporary workers who are ready to go can fill critical roles in logistics and transportation. While labor and management move toward agreement, these reliable workers keep warehouses operating, assist with shipment processing, and ensure supply chains keep operating. 

It is imperative to understand that this type of labor solution provided by temporary workers is just that—temporary—the mitigation measures designed to prevent disastrous disruptions and economic losses are temporary measures. The benefit of a good staffing agency is that it can provide breathing room for both parties to negotiate so that a fair and sustainable solution can be reached without jeopardizing product delivery for the consumer.

CONCLUSION

With more disruption looming due to labor unrest, the chances of long, impactful strikes in 2025 and their dreaded impact on consumer goods—such as electronics—cannot be ignored. The wisdom of the shopper cannot be underestimated, either. They tend to heed the economic signals by grabbing products before availability diminishes and prices climb. 

It behooves businesses to prepare for when supply challenges seem possible. Preparations like having a trusted temporary staffing agency on the road to keep operations running are the precautions that keep a business running and profitable. Temporary staffing can play a highly valued, critical role in patching gaps due to workflow stoppage, so supply chains won't stop when labor does.