President Joe Biden on Tuesday night backed union dockworkers and pressured US port employers to put forward a “fair contract” ahead of the second day of historic port strikes.
Some 45,000 members of the International Longshoremen’s Association walked off the job on Tuesday – picketing at ports stretching from Maine to Texas as they fight for higher wages and protections from automation to be included in their new contract.
“Foreign ocean carriers have made record profits since the pandemic, when Longshoremen put themselves at risk to keep ports open,” Biden said in a post on X.
“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.”
Analysts warn the strike could cost the economy billions of dollars a day as food, automobile, pharmaceutical and other goods shipments stall.
Biden instructed his team to monitor for potential price gouging activity that benefits foreign ocean carriers, the White House said.
Retailers, auto suppliers and produce importers had hoped Biden would impose the federal Taft-Hartley Act, which allows US presidents to enact an 80-day cooling-off period that forces employees to return to work during certain labor disputes.
Republican representatives Sam Graves and Daniel Webster – both chairs of transportation committees – asked Biden on Tuesday to invoke the Taft-Hartley Act.
But those hopes were swept away when Biden said Monday that he does not “believe” in Taft-Hartley.
Harold Daggett – the fiery, outspoken union boss leading the strikes – had mocked the idea during an interview in early September.
“Do you think when I go back for 90 days those men are gonna go to work on that pier?” Daggett said.
The United States Maritime Alliance had offered the union a 50% wage hike in its new six-year contract – but Daggett said the union is pushing for more.
Daggett – who raked in $728,000 in compensation last year from the ILA – said the union is seeking a $5 per hour raise for each year of the six-year contract and a promise to prohibit automation.
“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 said on Tuesday.
The widespread picketing represents the ILA’s first major strike since 1977.
The strike comes soon after Hurricane Helene wreaked devastation across the Southeastern states and ahead of the holiday shopping season.
About half of US imports arrive via water, according to Morgan Stanley.
If the strike persists, it could slam the US economy – costing it as much as $5 billion a day, JP Morgan analysts estimated.
The port logjams could result in supply chain disruptions, food shortages and price hikes akin to the economic turmoil seen during the pandemic.
