WASHINGTON — Republicans lawmakers are warning President Joe Biden to get more involved in the dispute between waterfront labor and container terminal operators at East Coast ports or risk a major supply chain disruption starting at the end of the month.
“Given the devastating economic consequences of a potential strike and the Administration’s lack of engagement to date, we urge you to give immediate attention to this matter, to aid in these negotiations, and find a reasonable resolution to these contract disputes,” wrote 69 House Republicans in a letter sent to the White House on Thursday.
“We expect the Administration to provide any and all support it can offer to both parties as these negotiations continue. Furthermore, if a strike should occur, we urge the Administration to utilize every authority at its disposal to ensure the continuing flow of goods and avoid undue harm to American consumers and the Nation’s economy.”
Transportation Secretary Pete Buttigieg, Labor Secretary Julie Su, Commerce Secretary Gina Raimondo and Agriculture Secretary Tom Vilsack were copied on the letter.
The pressure from lawmakers comes after Republican members of the House Transportation and Infrastructure Committee were briefed on the situation by the American Trucking Associations, National Retail Federation, the National Association of Manufacturers, the American Forest & Paper Association, and other port customers.
It also follows pledges made by the Biden administration – which has strong union support and will need that support for Democrat Kamala Harris’ presidential bid – to not force dockworkers back to work if a strike is called on Oct. 1, when the current contract expires.
The lawmakers said it is important for the ILA and employers, represented by the United States Maritime Alliance (USMX), to remain at the bargaining table “as long as necessary” to avoid a work stoppage that potentially could grind freight supply chains to a halt.
“A strike at this point in time would have a devastating impact on the economy, especially as inflation is on the downward trend,” wrote a coalition of trade groups on Tuesday, also calling on Biden to be prepared to step in if necessary.
“Even a short disruption could require weeks to fully resolve, leading to significant backlogs and delays,” container shipping giant Maersk [NASDAQ: MaerskB] told customers earlier this month.
But the ILA, which has been standing firm on wage demands and opposition to automation in its negotiations, asserted this week that a strike at ILA ports on the Atlantic and Gulf coasts on Oct. 1 “seems more likely as time is running out to get a new Master Contract Agreement settled with USMX.”
