Leading U.S. business groups are calling on President Biden to use legal authority to intervene in a port strike on the East Coast and Mexico’s Gulf Coast that began Tuesday.
About 45,000 longshoremen affiliated with the International Longshoremen’s Association (ILA) at 36 ports on the East Coast and Gulf Coast went on strike on Tuesday after failing to reach an agreement on a new contract. The union’s six-year contract with the United States Maritime Alliance (USMX), which represents port employers, expired Monday night. In addition to protection from automation, ILA is also seeking a 77% salary increase over the life of the new contract.
The National Association of Manufacturers (NAM), the U.S. Chamber of Commerce, the National Retail Federation (NRF), and the National Association of Wholesale Distributors (NAW) call on Mr. Biden to invoke the federal labor law known as the Taft-Hartley Act. announced. This will allow the port to resume operations during an 80-day cooling-off period while negotiations continue.
“Manufacturers are calling on President Biden to intervene by invoking the Taft-Hartley Act to force ports to resume operations while negotiations continue,” NAM CEO Jay Timmons said in a statement. “There is,” he said. “A strike, even short-term, would have a dire economic impact on manufacturing supply chains.”
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“NAM estimates that strikes at Eastern and Gulf ports could threaten $2.1 billion in trade per day and total economic damage could reduce GDP by up to $5 billion per day.” said Timmons. “The president can use his authority to protect manufacturers and consumers, and we expect him to act quickly.”
In a letter to Biden, U.S. Chamber of Commerce CEO Suzanne Clark said, “In 2021, Americans experienced the pain of product delays and shortages due to pandemic-era supply chain disruptions. It is unconscionable to allow a contract dispute to have such an impact.” Even for our economy. ”
“These ports collectively handle more than 68% of the country’s containerized exports and 56% of its imports, with daily trade valued at more than $2.1 billion. , and many other small and medium-sized businesses that depend on the port. Simply put, we have the authority to continue negotiating contracts to keep the port open,” Clark said. “Taft Hartley will provide time for both sides of the negotiations to reach an agreement on a new labor contract.”
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Matthew Shea, CEO of the National Retail Federation, issued a statement saying, “We urge President Biden to immediately restart operations at all affected container ports and bring back those involved. We urge the United States to utilize all available powers and tools, including the use of the Taft-Hartley Act.” Come to the negotiating table to avoid further confusion. ”
“A disruption of this magnitude at a critical time in our nation’s economic recovery would have a devastating impact on American workers, their families, and their communities,” Shea said. “After more than two years of runaway inflationary pressures and in the midst of recovery from Hurricane Helen, this attack will bring further hardship to American families.”
He added, “The administration must prioritize our economy and the millions of Americans who depend on it for their livelihoods and well-being, and intervene immediately to prevent further hardship and severe economic consequences.” ” he added.
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“The East Coast and Gulf Coast port strikes are putting our economy and national security at risk. “This is a serious problem, not just a disruption to a small number of shipments.” It shuts down supply chains and halts the flow of critical goods. ”
Hoplin said economic losses are estimated at more than $5 billion per day, and small businesses are at risk of empty shelves due to missed deliveries.
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“The Biden administration must use its authority now to end the strike before the impact becomes irreversible. “It’s about power,” he said. “The administration must take decisive action to end this strike, reopen our ports, and ensure America remains a leader in global trade.”