Trade groups have called on US President Joe Biden to use his power to end a port strike that has spread across large portions of America’s coastline.
National Retail Federation chief executive Matthew Shay said the president should use “any and all authority” to put the strike to an end and reopen ports, including using his powers under the Taft-Hartley Act.
The law, under some circumstances, allows the president to order a “cooling off period” that sends workers back to their jobs during negotiations.
“A disruption of this scale during this pivotal moment in our nation’s economic recovery will have devastating consequences for American workers, their families and local communities,” Shay said.
“After more than two years of runaway inflationary pressures and in the midst of recovery from Hurricane Helene, this strike will result in further hardship for American families.”
He said the Biden administration must prioritise the economy and intervene.
The call comes on the same day the International Longshoremen’s Association went on strike at container and vehicle terminals on the US Gulf Coast and US East Coast.
The sweeping labour action went ahead even after employers’ group US Maritime Alliance, known as USMX, upped its wage offer.
“It is essential that the ILA and USMX immediately resume negotiations with the intention of finalising a new master contract without further disruptions and put an end to this stalemate,” Shay said.
Biden, who has pledged to be the most union-friendly president in American history, has said that he would not intervene in the strike, and he ruled out using his powers to stop it.
“There’s collective bargaining, and I don’t believe in Taft-Hartley,” he said
That drew a reaction from the National Association of Manufacturers (NAM).
Chief executive Jay Timmons said manufacturers call on him to use his Taft-Hartley powers, to force ports to reopen while renegotiations continue.
“There will be dire economic consequences on the manufacturing supply chain if a strike occurs for even a brief period,” he said.
“NAM estimates show a strike at the East and Gulf Coast ports would jeopardize $2.1bn in trade daily, and the total economic damage could reduce GDP by as much as $5bn per day.”
