President Biden has urged for a quick resolution to the dockworkers’ strike that is causing major delays in shipping at eastern dockyards, threatening to drain billions from the US economy. Tens of thousands of dockworkers from the International Longshoremen’s Association are demanding higher wages and better protections, leading to containers piling up at ports from Maine to Texas. The standoff could result in economic losses of $4.5bn to $7.5bn per week, according to market forecasters.
The White House is pushing for negotiations between the workers and their employers, the United States Maritime Alliance (USMX), as the strike continues. Biden criticized ocean carriers for reaping huge profits during the pandemic while workers struggle, calling for fairness in compensation. Transportation Secretary Pete Buttigieg also encouraged the port employers to make concessions to end the strike.
An extended strike could have negative effects on the economy and supply chains, experts warn. While Biden has the power to order union members back to work under the Taft-Hartley Act, he has not yet done so, aligning with his pro-union stance. The president has also instructed his team to monitor potential price gouging by foreign carriers during the standoff.
As negotiations remain at a standstill, the longer the strike goes on, the greater the economic impact and recovery time for supply chains. Biden’s emphasis on fair compensation for workers and his commitment to a pro-union administration continue to shape his approach to resolving the labor dispute.
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