Negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) broke down earlier this summer. The two sides remain far apart on key issues with the contract set to expire Oct. 1.
The ILA says it represents about 85,000 longshoremen, and the USMX says the current contract covers around 25,000 port workers. This would be the union’s first strike since 1977.
Estimates for the economic impact of the strike cover a wide range: The business research nonprofit The Conference Board puts the cost at around $540 million per day, while analysts at JP Morgan estimated the cost could be up to $5 billion daily.
Despite the potential economic impact, President Biden said he would not invoke the Taft-Hartley Act, the 1947 law that allows the president to request an 80-day, court-ordered cooling-off period if a strike would “imperil the national health or safety.”
“We support collective bargaining. We believe it’s the best way for both American workers and employers to come to a fair agreement — one that benefits the workers in a way that reflects the success of the companies,” said White House spokesperson Robyn Patterson.
Patterson also noted that this weekend, “senior officials have been in touch with USMX representatives urging them to come to a fair agreement fairly and quickly– one that reflects the success of the companies. Senior officials have also been in touch with the ILA to deliver the same message.”
Rep. David Rouzer (R-N.C.) argued that the “Biden-Harris Administration has failed to act to protect our economy and American consumers” in a post on the social platform X Monday.
“A week-long strike would create a backlog at our ports until November,” said Rouzer, who represents Wilmington, where one of the ports to be impacted by the strike is located.
U.S. Chamber of Commerce President Suzanne Clark pushed Biden Monday to invoke Taft-Hartley, warning it “would be unconscionable to allow a contract dispute to inflict such a shock to our economy.”
“These ports collectively handle more than 68 [percent] of all containerized exports and 56 [percent] of imports for the nation, with a daily trade value exceeding $2.1 billion,” Clark wrote. “Simply put, you have the authority to keep contract negotiations going while keeping the ports open.”
The Hill’s Taylor Giorno has more here.
