Michael Lee, founder of Michael Lee Strategy, explains the impact of the port strike on markets and the economy, and reflects on the upcoming vice presidential debate.
Major U.S. business groups are calling on President Biden to use legal authority to intervene in a port strike on the East Coast and Mexico's Gulf Coast that began on Tuesday.
Approximately 45,000 Unionized longshoremen Thirty-six ports on the East Coast and Gulf Coast went on strike Tuesday after failing to reach new contract agreements with the International Longshoremen's Association (ILA). The union's six-year contract with the United States Maritime Alliance (USMX), which represents port employers, expired Monday night. In addition to protection from automation, ILA is also seeking a 77% salary increase over the life of the new contract.
The National Association of Manufacturers (NAM), the U.S. Chamber of Commerce, the National Retail Federation (NRF), and the National Association of Wholesale Distributors (NAW) call on Mr. Biden to invoke the federal labor law known as the Taft-Hartley Act. announced. This will allow the port to resume operations during an 80-day cooling-off period while negotiations continue.
“Manufacturers are calling on President Biden to intervene by invoking the Taft-Hartley Act to force ports to resume operations while negotiations continue,” NAM CEO Jay Timmons said in a statement. “There is,” he said. “There will be dire economic consequences.” manufacturing supply chain In the event of a strike, even for a short period of time. ”
The Taft-Hartley Act: Why Biden Could Use This Labor Law to Stop a Port Strike
Longshoremen at the Eastern and Gulf ports went on strike on Tuesday. (Photo credit: Jesus Olarte/Anadolu via Getty Images/Getty Images)
“NAM estimates that strikes at Eastern and Gulf ports could threaten $2.1 billion in trade per day and total economic damage could reduce GDP by up to $5 billion per day.” said Timmons. “The president can use his authority to protect manufacturers and consumers, and we expect him to act quickly.”
“Americans have experienced the pain of trade delays and product shortages,” Suzanne Clark, CEO of the U.S. Chamber of Commerce, said in a letter to Biden. Supply chain backlog in the pandemic era It is unconscionable to allow contract disputes to have such a devastating impact on our economy. ”
“These ports handle more than 68% of the country's container exports and 56% of its imports, with daily trade valued at more than $2.1 billion, and are important to many people. small business That includes trucking, restaurants, and other people who depend on these ports for a living. Simply put, we have the authority to continue contract negotiations with the ports open,” Clark said. I'm sure he will.”
Longshoremen begin strike at Eastern and Gulf ports
Longshoremen want raises and protection from automation. (Photo by MARK FELIX/AFP via Getty Images/Getty Images)
Matthew Shea, CEO of the National Retail Federation, issued a statement saying, “We urge President Biden to implement the Taft-Hartley Act to immediately restore operations to all affected stores. We urge them to utilize all available powers and tools, including the use of container portto bring the parties back to the negotiating table and avoid further confusion. ”
“A disruption of this magnitude at a critical time in our nation's economic recovery would have a devastating impact on American workers, their families, and their communities,” Shea said. “After more than two years of runaway inflationary pressures and in the midst of recovery from Hurricane Helen, this attack will bring further hardship to American families.”
He added, “The administration must prioritize our economy and the millions of Americans who depend on it for their livelihoods and well-being, and intervene immediately to prevent further hardship and severe economic consequences.'' ” he added.
President Trump blames longshore worker strike on 'massive inflation' by 'Harris-Biden administration'
Business groups called on President Biden to use the Taft-Hartley Act to intervene in the port strike. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
“The East Coast and Gulf Coast port strikes are putting our economy and national security at risk. “This is a serious problem, not just a disruption to a small number of shipments.” It shuts down supply chains and halts the flow of critical goods. ”
Mr. Hoplin is economic damage With sales exceeding $5 billion per day, small businesses are at risk of empty shelves due to delivery errors.
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“The Biden administration must use its authority now to end the strike before the impact becomes irreversible. “It's about power,” he said. “The administration must take decisive action to end this strike, reopen our ports, and ensure America remains a leader in global trade.”
