Despite Possibly 'Crippling' The Economy, Biden Won't Stop Port Strike
“I don't believe in Taft-Hartley,” Biden told reporters on Sunday.
By Peter List, Editor | September 30, 2024
On the heels of devastating hurricane damage to the Southeastern United States, a long-anticipated strike by the International Longshoremen’s Association (ILA) at U.S. ports on the East and Gulf Coast may throw the economy into “pandemic-like” supply chain shortages.
More than 68 percent of all U.S. container exports and more than 56 percent of container imports flow through East and Gulf Coast ports, reported the New York Times.
Many businesses would be hurt by a walkout because lots of raw materials — wood and cotton, for example — pass through these ports. Most imports of pharmaceutical products carried in containers flow through the affected ports. And a wide variety of food shipments pass through the East and Gulf Coast ports.
Nevertheless, President Biden—who has the power to stop the strike and order an 80-day cooling-off period under the Taft-Hartley Amendments to the National Labor Relations Act—told reporters that he would not stop the strike.
"It's collective bargaining,” Biden said on Sunday. “I don't believe in Taft-Hartley.”
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More than money issues.
While the 85,000-member ILA and the United States Maritime Alliance (USMX) are still far apart on wages, and negotiations have been stalled for months, there is an underlying issue that looms just as large: Automation.
ILA members make less than their counterparts on the West Coast who are represented by a different union, the International Longshore and Warehouse Union (ILWU)
“Union workers at ports in the East and Gulf coasts earn a base wage of $39 an hour after six years on the job compared to reports that West Coast union workers, which make $54.85 an hour,” reported USA Today on Monday..
The International Longshoremen's Association is demanding a 77% pay raise increase over six years and more restrictions and bans on the automation of cranes, gates and container movements used in loading or unloading of cargo.
While the ILA disputes USMX’s claim about the wage increases being sought, it is the latter issue—bans on automation— that may be a bigger sticking point between the parties.
With AI and robotics disrupting traditional work done by humans at the ports, the ILA sees a future of fewer members and does not like where port technology is heading.
“I feel like our constant battle, for the rest of our lives, you know, and moving forward is going to be our fight against automation you know and they're going to they're going to try to figure out different ways to pay off the current existing workforce,” stated ILA Vice President Dennis Daggett during a recent podcast. “But we can't allow that.
We can't fall for that because…we have to fight just like our ancestors fought for us. We have to fight for future generations because, you know one day maybe my son or daughter wants to be a longshoreman because they want to follow in my footsteps. well I want to make sure that they have a few future and we can't sell out for anything and we won't sell out in the ILA. I know that.
With the parties far apart as of Monday, a strike at midnight is almost a certainty.
However, at a cost of $5 billion per day, it is questionable how long the strike will go on and whether President Biden will change his mind on intervening before the damage to the economy becomes too great.
Possible election ramifications?
With the national elections occurring on November 5th, there might be some spillover into politics.
If consumers see a spike in inflation, or shortages that cause layoffs, there could be blowback against the Biden Administration and, as a result, Kamala Harris and her campaign to beat Donald Trump.
“Intervening to stop the strike — as Biden did two years ago to prevent rail workers from walking off the job — could sour labor voters on Harris, who is trying to shore up support from blue-collar workers who could decide the election in critical swing states,” noted Politico over the weekend. “But allowing a lengthy work stoppage could unleash pain on consumers, driving up prices and delaying imports of automobiles, bananas and even Christmas decorations.“
While Biden has stuck to his not intervening, Trump has been silent on the topic…for now.