Biden Comments On Strike
As dockworkers from 36 East and Gulf Coast ports went on strike Tuesday, the Biden administration made it clear that it would not be stepping in using the Taft-Hartley Act, a federal labor law that allows the government to intervene in strikes deemed to pose a national emergency. White House Press Secretary Karine Jean-Pierre confirmed this stance, telling FOX Business’ Edward Lawrence, “We have not used Taft-Hartley, and we’re not planning to.”
The International Longshoremen’s Association (ILA), representing 45,000 dockworkers, initiated its first strike since 1977 after the expiration of a six-year contract with the U.S. Maritime Alliance (USMX), the group representing port employers.
This walkout, which began at midnight on Tuesday, follows a breakdown in negotiations over the terms of a new agreement. The strike is set to impact seaports from Maine to Texas, slowing the flow of goods and potentially causing significant disruptions to supply chains.
The Biden administration has taken a stance of non-intervention, despite having the legal ability under the Taft-Hartley Act to impose an 80-day “cooling-off” period, which would require dockworkers to return to work while negotiations continue.
The act, originally passed in 1947 as an amendment to the National Labor Relations Act, grants the president the authority to intervene in labor disputes that threaten national security or create a “national emergency.”
While the White House has facilitated discussions between the two sides, President Biden has emphasized that he does not intend to invoke Taft-Hartley to break the strike. Last month, the administration hinted that this would not be an option on the table, and this position has remained firm.
“The president’s message has been very clear,” Jean-Pierre said. “The president’s going to continue to be regularly briefed. And we are urging USMX to come to the table to present a fair proposal to ILA.”
The economic toll of the strike could be substantial. J.P. Morgan analysts estimate that each day the strike continues, it will cost the U.S. economy between $3.8 billion and $4.5 billion. This comes at a time when the economy is already facing inflationary pressures and ongoing supply chain disruptions.
The ports along the East and Gulf Coasts are crucial arteries for goods, handling a significant portion of U.S. imports and exports. A prolonged strike could create ripple effects across multiple industries, affecting everything from retail to manufacturing.