White House sides with union as dockworker strike enters second day

Half of the nation’s ocean cargo was halted on Wednesday due to pressure from President Joe Biden’s administration on American port operators to increase their offer in order to reach a labor agreement with dockworkers who were on strike for a second day. The International Longshoremen’s Association (ILA) union strike has shut down dozens of ports from Maine to Texas, preventing the shipment of anything from food to cars. Analysts estimate that this disruption will cost the economy billions of dollars per day.

Everstream Analytics reports that on Tuesday, there were over 38 container vessels held up at U.S. ports, as opposed to just three on Sunday prior to the strike. Since the outbreak, foreign ocean carriers have experienced unprecedented profits as longshoremen risk their lives to keep ports open. In a post on X late on Tuesday, Biden stated, “It’s time those ocean carriers offered a strong and fair contract that reflects ILA workers’ contribution to our economy and to their record profits.”

According to the White House, he gave his staff instructions to keep an eye out for any possible price-gouging that favors foreign ocean carriers. Following the breakdown of discussions for a new six-year contract with the United States Maritime Alliance (USMX), the International Laboratories Association (ILA), which represents 45,000 port workers, went on strike just after midnight on Tuesday.

USMX had proposed a 50% pay increase to the union, but Harold Daggett, the ferocious head of the ILA, stated that the union is demanding more, such as a $5 hourly increase for each year of the new six-year contract and an end to port automation projects that threaten union jobs.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” Daggett stated on Tuesday. Tuesday saw hundreds of dockworkers demonstrate in an Elizabeth, New Jersey, shipping terminal serving the New York City area. They carried posters and yelled slogans like “ILA all the way!” while food vendors and music played. On Tuesday, Trump attributed the strike to inflation, claiming that the Biden-Harris administration was to blame.

According to an interview with Fox News Digital, Trump stated, “Everyone understands the dockworkers because they were decimated by this inflation, just like everybody else in our country and beyond.” Businesses who depend on maritime shipping to sell their goods or obtain essential imports are concerned about the strike, which is the ILA’s first significant halt since 1977. It affects 36 ports – including New York, Baltimore and Houston – that handle a range of containerized commodities from bananas to apparel to autos.

A $5 billion daily damage to the US economy is estimated by JP Morgan analysts due to the walkout. The National Retail Federation called on Biden’s administration to utilize its federal authorities to suspend the strike, warning the walkout may have “devastating consequences” for the economy. Republicans warned of the strike’s negative effects on the economy and urged Biden to put an end to it, among them Virginia Governor Glenn Youngkin. Biden has stated time and time again that he won’t.

According to the U.S. Department of Agriculture, there won’t be any major changes to food costs or availability anytime soon. Additionally, as they prepare for the winter holiday sales season, retailers who account for roughly half of all container shipping volume reported that they had been hard at work putting backup plans into place to lessen the impact of the strike.