White House sides with union as dock workers strike enters second day By Reuters

By Doyinsola Oladipo

NEW YORK (Reuters) – President Joe Biden’s administration pressured U.S. port employers to lift their offer to strike a labor deal with dock workers on strike for a second day on Wednesday, suffocating half of the country’s shipping .

The strike by the International Longshoremen’s Association (ILA) union has blocked everything from food to car shipments at dozens of ports from Maine to Texas, in a disruption analysts warn will cost the economy billions of dollars a day.

More than 38 container ships had already been backed up at US ports by Tuesday, compared with just three on Sunday before the strike, according to Everstream Analytics.

“Foreign ocean carriers have made record profits since the pandemic as longshoremen put themselves at risk to keep ports open. It is time for these ocean carriers to offer a strong and fair contract that reflects the contribution of ILA workers to our economy and their record profits,” Biden said in a post on X late Tuesday.

He directed his team to monitor potential price-gouging activities benefiting foreign ocean carriers, the White House said.

The ILA, which represents 45,000 dock workers, launched its strike just after midnight on Tuesday after negotiations with the United States Maritime Alliance (USMX) over a new six-year contract collapsed.

USMX offered the union a 50 percent pay increase, but fiery ILA leader Harold Daggett said the union was pushing for more, including a $5-an-hour raise for each year of the new six-year contract and the port automation projects. which threatens union jobs.

“We are prepared to fight as long as necessary, to remain on strike for however long it takes, to get the wages and protection against automation that our ILA members deserve,” Daggett said Tuesday.

Hundreds of dockworkers demonstrated at a New York City-area shipping terminal in Elizabeth, New Jersey on Tuesday, carrying signs and chanting slogans such as “ILA all the way!” while music played and vendors sold food.

Trump on Tuesday blamed the strike on inflation, which he said was caused by the Biden-Harris administration.

“Everybody understands the dock workers because they’ve been decimated by this inflation, just like everybody else in our country and beyond,” Fox News Digital quoted Trump as saying in an interview.

“DEVASTATING CONSEQUENCES”

The strike, the ILA’s first major shutdown since 1977, worries companies that rely on shipping to export their goods or secure crucial imports. It affects 36 ports – including New York, Baltimore and Houston – that carry a range of containerized goods, from bananas to clothing and cars.

The withdrawal could cost the US economy about $5 billion a day, JP Morgan analysts estimate.

The National Retail Federation called on the Biden administration to use its federal authority to stop the strike, saying a walkout could have “devastating consequences” for the economy.

Republicans, including Virginia Gov. Glenn Youngkin, also called on Biden to end the strike, warning of its impact on the economy.

Biden has repeatedly said he will not do so.

The U.S. Department of Agriculture said Tuesday it does not expect significant changes in food prices or availability in the near term.

And retailers that account for about half of total container shipping volume said they had diligently implemented back-up plans to minimize the impact of the strike as they head into the winter holiday sales season.