Tens of thousands of longshore workers at 14 ports along the East Coast and Gulf of Mexico are prepared to walk off the job early Tuesday unless their unions and employers reach a new collective bargaining agreement by midnight. It threatens to disrupt both the economy and the 2024 election. .
Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) stalled earlier this summer, and the contract is set to expire at midnight, with the two sides still far apart on key issues.
ILA says it represents approximately 85,000 longshore workers, and USMX says the scope of the current contract is: Approximately 25,000 dockworkers. This is the first union strike against all ports on the East Coast and Gulf Coast since 1977.
These ports handle the majority of U.S. container volume and one-quarter of the United States' annual international trade. Approximately $3 trillionaccording to business research nonprofit The Conference Board.
“A one-week strike could cost the economy $3.78 billion, raise the prices of consumer goods and weigh on inflation,” the Conference Board said.
Estimates of the strike's economic impact vary widely, ranging from the Conference Board's estimate of $540 million per day to as much as $5 billion, according to JPMorgan analysts.
Despite the potential economic impact, the White House has rejected the Taft-Hartley Act, a 1947 law that allows the president to request a court-ordered 80-day cooling-off period if a strike “endangers the nation.” He said that he is not considering invoking it. Health or safety? ”
Asked Sunday if he would intervene to stop an imminent port attack, President Biden said “no.”
When asked why, the president cited “collective bargaining.”
“We support collective bargaining. We believe it is the best way for both American workers and employers to reach fair agreements that reflect the success of businesses and benefit workers. We believe that,” White House press secretary Robin Patterson said.
Patterson also said this weekend that “senior officials have been in touch with USMX representatives to urge them to reach a fair and expeditious agreement that reflects the successes of both companies. Senior officials have also been in touch with ILA. We are calling for the agreement to be implemented,'' he said. Same message. ”
Unions are demanding a ban on automation of cranes, gates and container trucks, and higher wages.
New York Gov. Kathy Hochul (D) announced preparations for a statewide strike on Monday, urging both sides to “respect our workers and continue commerce here in New York at the nation's busiest port.” He called on the government to reach an agreement that guarantees the
Rep. David Rouser (R.N.C.), who represents Wilmington, one of the potential locations for a port attack, targeted the Biden administration in 2016. Post to X Monday morning.
“A week-long strike will cause backlogs at our ports until November,” Rauser said. “The Biden-Harris administration has failed to act to protect our economy and American consumers.”
Some lawmakers have voiced support for the workers' strike, while calling for an agreement to minimize the economic impact.
“I'm proud to support it,” said Rep. Jerry Nadler (D.N.Y.), who represents part of Manhattan. [the longshoremen] They are fighting for fair wages, protection, and the respect they deserve. ”
“Longshoremen are the backbone of the U.S. economy, keeping America’s ports and supply chains running smoothly. During the pandemic, Longshoremen have worked with us to keep shelves stocked across the country. ,” Nadler said.
“We hope the parties can quickly reach an agreement to prevent a strike that would have far-reaching implications for port operators, the economy and longshore workers.”
“To find a solution that respects workers' rights while minimizing economic disruption,” said Rep. Troy Carter, D-Louisiana, who represents New Orleans, another potential strike site. Both parties must come together in good faith.”
“All workers are entitled to a fair wage for their work. Period. I am committed to the right of the International Longshoremen Association to bargain for fair wages, benefits, and safe working conditions. We fully support them. We also recognize that a strike of this magnitude could have a significant impact on the U.S. economy,” Carter said.
President George W. Bush was the last president to invoke the Taft-Hartley Act, using it in 2002 to end lockouts of longshore workers represented by the International Longshore and Warehousing Union.
But pulling that lever would be a “political minefield with elections around the corner,” the Conference Board said.
The move could also jeopardize Biden's stated goal of becoming the most pro-union president in U.S. history.
“Given the president and vice president's commitment to supporting the labor movement, Taft-Hartley's invocation is viewed by the labor movement as a significant threat to their autonomy and ability to negotiate across the table.” “I think they understand that they will be seen as a threat by their employers,” said Alex Hertel Fernández, an associate professor of international and public affairs at Columbia University and a former Labor Department official. Ta.
Although Biden and Congress intervened to avert a major rail strike in 2022, railway labor lawHertel Fernández, who specifically manages disputes between railway operators and trade unions, noted that “the economy is in a very different situation than it was when there was a possibility of a railway strike.”
“Bottlenecks in trucking and rail transport have caused fairly significant supply chain disruptions, meaning consumers already face many challenges in obtaining goods that are increasingly in demand. ,” said Hertel Fernández.
The inflation rate also dropped significantly from 6.5% in December 2022, when Biden signed the Railroad Strike Avoidance Act, to 2.5% in August.
Less than a year later, Biden became the first president to walk the picket line during the United Auto Workers strike and won the support of most unions before withdrawing from the race in July.
Vice President Harris has continued to garner support from key unions since she began her campaign in mid-July, especially as union members in key battleground states could tip the balance of the race.
ILA President Harold Daggett said: press release This summer, he began a “longstanding relationship” with former President Trump, and the two had “productive talks” in November 2023.
Mr. Daggett said President Trump “has pledged to support the ILA in its opposition to automated terminals in the United States,” which is a key concern for the union.
“Automation is a big part of this issue and a concern that workers across the economy have. The difference here is that longshoremen have unions to address those concerns, whereas , the vast majority of workers in the private sector don't have that ability and don't have a say in what happens with automation and AI in their work,” Hertel Fernández said.
Although many retailers have already taken steps to reduce the potential impact of the strike by shipping goods earlier or moving goods to the West Coast, the strike has businesses concerned.
U.S. Chamber of Commerce President Suzanne Clark on Monday urged Biden to invoke Taft-Hartley, warning that it would be “unconscionable to allow a contract dispute to have such a devastating impact on our economy.” did.
“These ports handle a total of 68 or more [percent] 56 out of all container exports [percent] “The country's imports exceed $2.1 billion and daily trade exceeds $2.1 billion,” Clark wrote. “Simply put, we have the authority to continue contract negotiations with the ports open.”
Approximately 200 business and industry associations called Biden tried to bring the ILA and USMX back to the negotiating table earlier this month.
“The global supply chain is a complex system, and even the slightest disruption can negatively impact and cause delays at a critical time for both retailers and consumers,” National Retail Federation Supply Chain and Tariffs said Jonathan Gold, vice president of policy. .
Contributed by Alex Gangitano.
