United States President Biden is urging for a quick resolution to the ongoing dockworkers’ strike that is threatening to have significant economic consequences. Tens of thousands of dockworkers are on strike for a second day, leading to a backlog of containers at 36 ports on the eastern coast. The strike, led by the International Longshoremen’s Association (ILA), is seeking higher wages and better protections for workers. Market forecasters predict that the standoff could drain between $4.5bn and $7.5bn from the US economy for every week it continues.
President Biden has called on the United States Maritime Alliance (USMX) to engage more with the workers’ demands and reach a deal swiftly to avoid economic losses. The president and his transportation secretary, Pete Buttigieg, have both criticized the ocean carriers for their substantial profits during the pandemic and urged them to fairly compensate the workers. While USMX offered a 50 percent wage increase and current automation checks in its final offer before negotiations collapsed, the workers are seeking a 77 percent wage hike and a ban on automation.
Analysts warn that a prolonged strike could have more significant implications for the US economy and supply chains. President Biden has the authority to order the union members back to work under the 1947 Taft-Hartley Act but has refrained from doing so, aligning with his pro-union stance. As the strike continues, the administration is monitoring for potential price gouging by foreign carriers. The longer the standoff persists, the deeper the economic impact is expected to be.
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