Biden won't block potential strike at East Coast ports, administration official says

U.S. President Joe Biden does not intend to invoke a federal law to prevent a port strike on the East Coast and Gulf of Mexico if dockworkers fail to secure a new labor contract by an Oct. 1 deadline, an administration official said on Tuesday.

The International Longshoremen's Association, negotiating on behalf of workers at three dozen U.S. ports from Maine to Texas that handle about half of the nation's ocean imports, warned again on Tuesday that its members are prepared to stop work in two weeks.

Their current six-year agreement with the United States Maritime Alliance (USMX), which includes employers like Maersk's (MAERSKb.CO), opens new tab APM Terminals and SSA Marine, expires on Sept. 30.

U.S. presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act, forcing workers back on the job while negotiations continue.

"We've never invoked Taft-Hartley to break a strike and are not considering doing so now," the Biden administration official told Reuters.

"We encourage all parties to remain at the bargaining table and negotiate in good faith."

Talks between the ILA and USMX have stalled over issues ranging from wages and benefits to terminal automation.

"Time is running out to get a new master contract agreement settled with USMX," ILA said in a statement.

"The only way to resolve this impasse is to resume negotiations, which we are willing to do at any time," said USMX, which added that a strike would be costly and detrimental to both sides.

The National Retail Federation on Tuesday led a group of 177 trade associations representing retailers like Walmart (WMT.N), opens new tab, manufacturers, farmers, automakers and truckers in calling on Biden to help reach a resolution.

Last summer, Biden dispatched Acting Labor Secretary Julie Su to help negotiate a crucial contract deal between U.S. West Coast seaport employers and their union workers, following labor disruptions at some busy California port terminals.

Both sides had agreed to keep talking after their July 1, 2022, deadline because the COVID pandemic cargo boom was jamming up critical supply chains and stoking inflation.

Their June 2023 deal secured a 32% pay increase for workers and was expected to be a template for labor talks on the East and Gulf coasts.

Source: Reuters