After months of failed negotiations, a strike by members of the International Longshoremen’s Association began Oct. 1.  As ILA members walked off the job without a new contract from the United States Maritime Alliance, more than 35 ports shut down along the East and Gulf coasts. In their first strike since 1977, the ILA has pledged to strike ‘as long as necessary’ seeking higher wages and a new language on automation in a six-year contract with the U.S. Maritime Alliance.

According to estimates, the economic loss from the strike will cost billions of dollars each day. It will also affect businesses large and small that are not party to the negotiations, but rely upon the free flow of goods, both imports and exports, through these critical ports.

In a statementon Oct. 1, ABC vice president of legislative & political affairs Kristen Swearingen said, “President Joe Biden must invoke his powers under the Taft-Hartley Act to restore operations at the ports and bring parties to the negotiating table so a contract can be reached with the help of a federal mediator. If the Biden-Harris administration is serious about rebuilding America––and maximizing hundreds of billions of dollars in taxpayer investments in infrastructure, clean energy and manufacturing––the construction industry simply can’t afford any more supply chain disruptions and additional costs on critical materials.”

“The price of construction materials has already increased by almost 40% since February 2020 and there have been reports of widespread shortages of key construction materials. Coupled with the construction industry’s skilled labor shortage topping half a million in 2024, these industry headwinds needlessly inflate the cost of construction projects and are exacerbated by the Biden-Harris administration’s weak leadership and anti-competitive executive actions.”

On Oct. 2, ABC joined a coalition of 270 federal, state and local trade associations in a letter calling upon President Biden to immediately use his  authorities to end the strike and, resolve this situation expeditiously to protect businesses and consumers from further harm. The letter also explains that while the coalition prefers parties reach agreements on their own, the closures’ devastating economic impact requires intervention by the administration.

Several members of Congress have also commented on the port strike, including House Speaker Mike Johnson’s, R-La., statement calling for leadership from the administration and for the parties to return to the table as well as a letter  from Transportation and Infrastructure Committee Chairman Sam Graves, R-Mo., and Coast Guard and Maritime Transportation Subcommittee Chairman Daniel Webster, R-Fla., urging President Biden to use the authority of his office to bring an end to the strike at U.S. East and Gulf Coast ports.

Prior to the strike, on Sept. 29, President Biden was asked about his intentions on whether to exercise his powers under the Taft-Hartley Act to keep the ports open and longshore workers on the job, responded, “No … because it’s collective bargaining, and I don’t believe in Taft-Hartley.” Notably, President George W. Bush applied the act in 2002 to halt an 11-day lockout of union members at West Coast ports.

On Oct. 1, when the strike began, the White House issued a statement: “President Biden and Vice President Harris are closely monitoring potential supply chain impacts and assessing ways to address potential impacts, if necessary. The President and Vice President were briefed on Agency assessments that show impacts on consumers are expected to be limited at this time, including in the important areas of fuel, food, and medicine.

“The President has directed his Supply Chain Disruptions Task Force to meet every day and prepare to address potential disruptions, if necessary. He has also directed his team to continue engaging extensively with labor, industry, state and local officials, ocean carriers, and rail and trucking companies. The Administration has already conducted dozens of meetings with industry on their plans, including multiple meetings with retailers, grocers, manufacturers, agriculture.”

USMX issued a statement yesterday noting its support for collective bargaining and said, “Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running.” The ILA responded to USMX, saying, “The ILA has rejected their so-called “nearly 50% wage increase” because it fails to address the demands of our members adequately.” The ILA has also created a strike update website.

Meanwhile, Acting Secretary of Labor Julie Su issued a statement yesterday on the negotiations. The statement seems to favor labor’s position on wages, saying that the shipping companies “have refused to put an offer on the table that reflects workers’ sacrifice and contributions to their employer’s profits.”

In response to the strike, the Federal Maritime Commission issued a release yesterday highlighting consumer assistance, enforcement and litigation services that individuals and companies could find helpful in seeking relief from current supply chain challenges.

ABC will continue to provide updates in Newsline.