By Zolan Kanno-Youngs
Earlier this week, President Joe Biden urged the coalition of port employers to make a fair proposition to striking longshoremen as the White House raced to mitigate the economic and political repercussions of the work stoppage at U.S. ports.
“Collective bargaining represents the optimal avenue for workers to secure the pay and benefits they rightfully deserve,” Biden stated. “Executive pay has surged alongside those profits, and shareholders have reaped benefits at unprecedented levels. It’s only just that workers, who risked their health during the pandemic to keep ports operational, receive a significant wage increase as well.”
The conflict between the roughly 45,000 workers and the port operators has put Biden and Vice President Kamala Harris in a complicated predicament. A lengthy strike could rattle the U.S. economy, leading to shortages, layoffs, and elevated prices for consumers just weeks before the presidential election.
The strike was initiated after a protracted standoff between the union and the port operators. The workers sought wage increases beyond what the operators’ representatives had proposed. Additionally, the union is contesting the introduction of automation in ports.
Biden has expressed that he would refrain from invoking a federal labor law to compel the workers to return, despite pressure from Republicans to manage the potential economic impact.
Using the nearly 80-year-old Taft-Hartley Act could alienate unions and weaken vital support from labor groups in key states like Pennsylvania, Wisconsin, and Michigan right before the presidential election.
“He is a proponent of collective bargaining, and that’s how an agreement will be reached,” said William Brucher, a labor studies professor at Rutgers University. Should Biden resort to the law to intervene, “there would be significant negative political ramifications not just for him and his legacy but for Vice President Harris and her presidential aspirations as well.”
In a previous labor conflict that threatened to halt rail traffic in 2022, Biden asked Congress to step in to prevent a potential strike. However, that situation was governed by a federal law specifically dealing with labor relations in the railroad sector, leaving the White House with limited options for this labor disruption, Brucher noted.
That choice in 2022 led to criticism from some union members towards Biden, who has labeled himself the “most pro-union president in American history.” Since then, Biden has participated in various events aimed at promoting policies favorable to unions. The Harris campaign has strategically utilized Biden to strengthen union support in vital swing states.
Without congressional action, Biden has had to leverage his platform to encourage both parties to negotiate a settlement. Even prior to the walkout by the International Longshoremen’s Association union, Biden had sent administration officials to seek a resolution.
Biden’s chief of staff, Jeff Zients, along with National Economic Council adviser Lael Brainard, met Monday with members of the United States Maritime Alliance, which represents port operators. Zients and Brainard “urged them to come to a resolution that recognizes the recent success of these companies and the indispensable contributions” of the dockworkers, as stated by the White House.
Biden’s senior aides, including Transportation Secretary Pete Buttigieg and Acting Labor Secretary Julie Su, have communicated with both the workers and port operators. High-ranking administration officials reached out to leaders on both sides of the talks Tuesday.
However, these efforts still cannot compel the two parties to reach an agreement.
“They have mediators offering their services to unite the two sides and facilitate an agreement by assisting with the negotiation of offers,” Brucher stated. “They cannot impose an agreement; it’s more about encouraging the two sides to negotiate.”
Both the Biden administration and external analysts have found that a strike lasting only a few days would have minimal effects.
However, a stoppage lasting weeks could impact the supply of goods and the economy overall. A strike could cost the economy between $4.5 billion and $7.5 billion, or a 0.1% reduction in annualized U.S. gross domestic product, weekly, as truckers and other workers reliant on the ports are furloughed and manufacturers face delivery delays, analysts from Oxford Economics reported.
Although those losses may be recouped once the strike concludes, analysts estimated it would take a month to clear the backlog for each week of the strike.
The looming threat of inflation has already raised concerns among some legislators. Republicans on the House Transportation and Infrastructure Committee dispatched a letter to Biden last month cautioning about “severe consequences for our supply chains, economy, and the American consumer.”
“Should a strike occur, we implore the administration to utilize every available authority to ensure the steady flow of goods and mitigate undue harm to American consumers and the nation’s economy,” the members expressed in the letter.
