White House Supports Union as Dockworker Strike Enters Second Day, Reports Reuters

By Doyinsola Oladipo

NEW YORK (Reuters) – The Biden administration is urging U.S. port employers to enhance their offers in order to reach a labor agreement with dockworkers who are on strike for the second consecutive day, leading to significant disruptions in half of the country’s ocean shipping operations.

The International Longshoremen’s Association (ILA) has initiated a strike that has halted shipments of various goods, including food and automobiles, across multiple ports from Maine to Texas. Analysts predict this disruption could lead to economic losses amounting to billions of dollars daily.

By Tuesday, over 38 container vessels were reported to be backed up at U.S. ports, a drastic increase from just three on Sunday prior to the strike, as per Everstream Analytics.

"Foreign ocean carriers have seen record profits since the pandemic while Longshoremen risked their health to keep ports operational. It’s time for these carriers to offer a fair contract that acknowledges the contributions of ILA workers to both the economy and their profitability," Biden expressed in a post on a social media platform late on Tuesday.

The President instructed his team to keep an eye out for any price gouging by foreign ocean carriers, according to the White House.

The ILA, which represents approximately 45,000 port workers, launched the strike just after midnight on Tuesday after negotiations for a new six-year contract with the United States Maritime Alliance (USMX) broke down. While USMX had proposed a 50% wage increase, ILA’s leader, Harold Daggett, indicated that the union is seeking additional concessions, including a $5 per hour wage increase per year over the new contract period and the cessation of port automation initiatives that could jeopardize union jobs.

"We are ready to strike for as long as it takes to secure the wages and protections against automation that our members deserve," Daggett stated on Tuesday.

Hundreds of dockworkers rallied at a shipping terminal in Elizabeth, New Jersey, brandishing signs and chanting slogans like "ILA all the way!" as music played and vendors sold food.

In a related remark, former President Trump attributed the strike to inflation, which he claims has been exacerbated by the Biden administration’s policies. "Dockworkers have been devastated by this inflation, just like the rest of the country," he said in an interview.

"DEVASTATING CONSEQUENCES"

This strike marks the ILA’s first major work stoppage since 1977 and is raising concerns among businesses that depend on ocean shipping for exports and essential imports. It affects 36 ports, including major ones like New York, Baltimore, and Houston, that handle a diverse array of goods, from bananas to clothing to automobiles.

According to estimates from JP Morgan analysts, the economic impact of the walkout could reach approximately $5 billion daily.

The National Retail Federation has urged the Biden administration to exercise federal authority to end the strike, warning that the disruption could lead to "devastating consequences" for the economy. In addition, several Republicans, including Virginia Governor Glenn Youngkin, have called on Biden to intervene, citing the economic repercussions.

However, Biden has consistently stated that he will not intervene.

The U.S. Department of Agriculture reported on Tuesday that it does not foresee significant changes in food prices or availability in the immediate future. Meanwhile, retailers, which represent around half of all container shipping volume, have been actively implementing backup strategies to mitigate the strike’s impact as the winter holiday sales season approaches.