# House Transportation and Infrastructure Committee Republican Leader Calls for White House Intervention in East Coast and Gulf Coast Port Labor Dispute
Author: Jeff Berman
September 20, 2024
This week, the Republican members of the House Transportation and Infrastructure Committee sent a letter to President Biden emphasizing the need to resolve differences between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), as their current collective bargaining agreement expires on September 30.
The ILA is North America’s largest maritime workers union, representing workers from Maine to Texas across 36 ports. The USMX is an alliance of container carriers, direct employers, and port associations serving the U.S. East Coast and Gulf Coast regions.
Their current six-year collective bargaining agreement was signed in September 2018, covering approximately 14,500 workers at East Coast and Gulf Coast ports. At the time of signing, the ILA stated that this extended six-year contract would bring significant wage increases, landmark protections for fully automated ports, and labor peace and stability until September 30, 2024.
The letter states, “Given the potentially devastating economic consequences of a strike and the lack of government involvement to date, we urge you to immediately address this matter, assist in these negotiations, and find reasonable solutions to resolve these contract disputes.”
The letter lists various reasons for the ongoing deadlock between the ILA and USMX, including wage increase proposals and the adoption of port automation technologies. The ILA has warned that if no agreement is reached, workers will stop work on October 1 at East Coast and Gulf Coast ports. This would lead to supply chain delays and have a severe impact on the economy and American consumers.
The letter also notes that the maritime industry has been operating under uncertainty for years, with carriers and warehousing capacity challenged since the pandemic, leading to port unloading delays and significant increases in freight rates. The letter mentions that negotiations between the International Longshore Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) on the West Coast in 2023 created an uncertain operating environment, resulting in a shift of cargo to the East Coast and other issues such as pirate attacks on merchant ships in the Red Sea and reduced water levels in the Panama Canal.
The letter states, “Now, with potential further service disruptions at East Coast and Gulf Coast ports, carriers and importers are once again forced to adjust their freight movements to cope with possible delays.” Retailers are reportedly accelerating shipments to East Coast and Gulf Coast ports ahead of a potential work stoppage starting in October. Additionally, cargo volumes are shifting back to the West Coast to avoid the upcoming situation, further exacerbating port congestion. If a work stoppage occurs at East Coast and Gulf Coast ports in October, it is estimated that a one-week strike would take until mid-November to recover and clear backlog. A two-week strike could take until 2025 to fully recover. Longer strikes would have even greater cascading effects, with any of these scenarios having severe consequences for American consumers and the holiday season.”
Regarding the White House’s lack of intervention, according to CNBC reports, the Biden administration has stated that it will not use powers under the Taft-Hartley Act to force union members back to work while urging all parties to return to the negotiating table. Earlier this month, a Biden administration spokesperson said in a report, “We have never used the Taft-Hartley Act to break strikes and are not considering doing so now.”
Everstream Analytics’ analysis notes that under the Taft-Hartley Act, President Biden could order port workers to avoid striking during government mediation to reach an agreement. However, on September 17, the Biden administration issued a statement detailing its intention not to intervene to prevent this strike and encouraging all parties to continue negotiations.
Everstream Analytics points out, “The timing of the U.S. presidential election may be a factor in this decision, as the Biden administration has consistently supported unions, and any move that weakens union bargaining power could harm Vice President and Presidential Candidate Kamala Harris’ chances of securing union support ahead of the November election.” “While direct government intervention is unlikely, the current administration has a strong incentive to avoid a full strike and its potentially severe economic impacts. Given that economic strength has become a key pillar in presidential elections, any length of strike could cost Harris support due to supply chain disruptions and port worker strikes leading to economic challenges.”
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Source: Logistics Management
