Business groups want Biden to intervene in worker strike at ports

(The Center Square) – A dockworker strike that could hobble U.S. ports from Maine to Texas got underway Tuesday as business groups called for President Joe Biden to step in.

Some 50,000 International Longshoremen’s Association members went on strike Tuesday against the East and Gulf Coast ports, snarling the flow of goods in what some predict could be the most disruptive strike in decades.

Ohio Chamber of Commerce President & CEO Steve Stivers said the strike could hurt Ohio.

“Today’s announcement by the International Longshoremen’s Association of a strike that will directly impact 56% of America’s ports is devasting news for Ohio,” he said in a statement. “Our state is ranked tenth in exported goods; we exported $55.8 billion in goods in 2023, accounting for 6.4% of our GDP. The export business also accounted for 194,000 jobs in 2021 (latest data available). Additionally, 88% of the Ohio companies that export goods are small to medium-sized businesses.”

Like it’s national counterpart, the U.S. Chamber of Commerce, the Ohio group called on Biden and the U.S. Congress to intervene in contract negotiations to shorten the duration of the strike.

“Every day of the strike requires 5 to 7 days to clear the backlog, so a lengthy strike will impact the holiday season and have a lasting impact on Ohio’s economy,” Stivers said.

The U.S. Chamber of Commerce said Biden should use the Taft-Hartley Act to avoid the work stoppage at 14 ports from Maine to Texas. The Taft-Hartley Act, or the Labor Management Relations Act of 1947, restricts some union activities and the power of labor unions. Biden has vowed not to use the 1947 law to intervene.

The Chamber of Commerce said that’s what Americans want the president to do.

A majority of American voters (57%) support the Biden Administration taking action to keep the ports open and operating while negotiations continue, according to a national poll from the U.S. Chamber. About 20% of those surveyed said they were opposed to federal intervention. The national poll surveyed 1,467 American voters in September 2024 with a margin of error of ~2.8%.

“A strike by the ILA would have a devastating economic impact, crippling major supply chains and cutting off the flow of numerous goods American consumers and businesses rely on every day,” Neil Bradley, executive vice president of the U.S. Chamber of Commerce, wrote in a post. “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.”

The National Retail Federation echoed those calls.

“NRF 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,” NRF President and CEO Matthew Shay said in a statement. “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.”

Chris Jahn, president and CEO of the American Chemistry Council, said the strike could affect all Americans.

“The ports impacted by the strike account for about 90% of the waterborne chemical shipments that move in and out of the U.S.,” he said. “Shutting down the ports along the East and Gulf Coasts will result in a major disruption of chemical imports and exports, which in turn will hurt the broader economy both here and abroad. We urge the White House to do everything possible to prevent this major shockwave from rippling through the American supply chain and hurting U.S. trade by working with both parties to resume contract negotiations.”

The strike, which extends from Maine to Texas, could affect everything from bananas to European beer and automobiles.

The International Longshoremen’s Association blamed the United States Maritime Alliance for refusing a contract offer.

“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” the union said. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”

It’s the first strike at these ports since 1977. The strike will affect 36 U.S. ports handling about half of U.S. ocean imports. Included are Boston, New York, New Jersey and Philadelphia.

Negotiations have been tense since June. The disagreement is between the International Longshore Association and Warehouse Union, which represents port workers across the country, and the U.S. Maritime Alliance, which represents terminal operators and ocean carriers.

Wages of East and Gulf coast workers are a base wage of $39 an hour after six years. The union is asking for a 77% pay increase over six years. It is also asking for more restrictions and bans on the automation of cranes, gates, and container movements used to load or unload cargo.