Michael Lee Technique founder Michael Lee explains the affect of the port strikes in the marketplace and the financial system and weighs in on the upcoming vice presidential debate.
Main enterprise teams within the U.S. are calling on President Biden to make use of his authorized authority to intervene within the strike at East and Gulf Coast ports that started Tuesday.
About 45,000 unionized dockworkers with the Worldwide Longshoremen’s Affiliation (ILA) at 36 seaports on the East and Gulf coasts went on strike on Tuesday after they had been unable to succeed in a deal on a brand new contract. The union’s six-year contract with the U.S. Maritime Alliance (USMX), which represents port employers, expired Monday evening. The ILA is looking for 77% pay raises over the course of the brand new contract in addition to safety from automation.
The Nationwide Affiliation of Producers (NAM), the U.S. Chamber of Commerce, the Nationwide Retail Federation (NRF) and Nationwide Affiliation of Wholesale-Distributors (NAW) launched statements calling on Biden to invoke a federal labor legislation referred to as the Taft-Hartley Act that might restore operations at ports throughout an 80-day cooling off interval whereas negotiations proceed.
“Manufacturers call on President Biden to intervene by invoking the Taft-Hartley Act, which will force ports to resume operations while negotiations continue,” NAM CEO Jay Timmons mentioned in a press release. “There will be dire economic consequences on the manufacturing supply chain if a strike occurs for even a brief period.”
THE TAFT-HARTLEY ACT: WHY BIDEN COULD USE THIS LABOR LAW TO PREEMPT A PORT STRIKE
Dockworkers at East and Gulf Coast ports went on strike Tuesday. (Photograph by Jesus Olarte/Anadolu by way of Getty Photos / Getty Photos)
“NAM estimates show a strike at the East and Gulf Coast ports would jeopardize $2.1 billion in trade daily, and the total economic damage could reduce GDP by as much as $5 billion per day,” Timmons mentioned. “The president can protect manufacturers and consumers by exercising his authority, and we hope he will act quickly.”
U.S. Chamber of Commerce CEO Suzanne Clark mentioned in a letter to Biden, “Americans experienced the pain of delays and shortages of goods during the pandemic-era supply chain backlogs in 2021. It would be unconscionable to allow a contract dispute to inflict such a shock to our economy.”
“These ports collectively handle more than 68% of all containerized exports and 56% of imports for the nation, with a daily trade value exceeding $2.1 billion. They are also critical to many small businesses including trucking, restaurants, and others that rely on these ports for their livelihood. Simply put, you have the authority to keep contract negotiations going while keeping the ports open,” Clark mentioned. “Taft-Hartley would provide time for both parties in negotiations to reach a deal on a new labor contract.”
DOCKWORKERS GO ON STRIKE AT EAST AND GULF COAST PORTS
Dockworkers are looking for pay raises and safety from automation. (Photograph by MARK FELIX/AFP by way of Getty Photos / Getty Photos)
Nationwide Retail Federation CEO Matthew Shay launched a press release saying that the group “urges President Biden to use any and all available authority and tools – including use of the Taft-Hartley Act – to immediately restore operations at all impacted container ports, get the parties back to the negotiating table and ensure there are no further disruptions.”
“A disruption of this scale during this pivotal moment in our nation’s economic recovery will have devastating consequences for American workers, their families and local communities,” Shay mentioned. “After more than two years of runaway inflationary pressures and in the midst of recovery from Hurricane Helene, this strike will result in further hardship for American families.”
“The administration must prioritize our economy – and the millions of Americans who depend on it for their livelihood and wellbeing – and intervene immediately to prevent further hardship and deeper economic consequences,” he added.
TRUMP BLAMES PORT WORKERS STRIKE ON ‘MASSIVE INFLATION’ CAUSED BY ‘HARRIS-BIDEN REGIME’
Enterprise teams urged President Biden to make use of the Taft-Hartley Act to intervene within the port strike. (Photographer: Michael Nagle/Bloomberg by way of Getty Photos / Getty Photos)
Eric Hoplin, CEO of the Nationwide Affiliation of Wholesaler-Distributors, mentioned in a press release that the “East and Gulf Coast port strike is putting our economy and national security at risk. This strike isn’t just about disrupting a few shipments; it’s about stopping the supply chain and bringing the flow of critical goods to a standstill.”
Hoplin famous estimates placing the financial injury at upwards of $5 billion a day and that small and mid-sized companies are liable to going through empty cabinets because of missed deliveries.
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“The Biden administration must use its authority now to stop the strike before the impact becomes irreversible. This is not just about pay or shipping delays – it’s about our global competitiveness,” he mentioned. “The administration must act decisively – end this strike, reopen the ports, and ensure the U.S. remains a leader in global trade.”
