The administration of President Joe Biden said it would stay out of an impasse between the Port of Oakland and longshoremen’s unions, which still hold the right to call for a strike over grievances at several of the country’s busiest ports. The step is likely to raise supply chain disruptions at a time when the U.S. economy is only slowly coming back from different inflationary pressures and related COVID-19 dynamics.
Contrasting with other instances in which he directly intervened in labor disputes, Biden announced a certain continuation of activity at the ports. Last year, he intervened to avert a nationwide rail strike, helping unions and rail companies work out an agreement. This time, however, he urged respect for the collective bargaining process between the International Longshore and Warehouse Union (ILWU) and port operators.
During a press conference on Monday, Biden said: “I believe in the right of workers to negotiate their wages and working conditions. That’s something for the union and the employers to resolve. We support the right to strike if that’s what they decide to do.”
Disputes center on higher pay, better working conditions, and greater control over automation in ports that workers believe imperil jobs. The ports, at Los Angeles and Long Beach among others, handle a substantial share of the country’s imports and exports; so any stoppage will have spillover effects on businesses and consumers everywhere.
Hence, industry leaders warned of such a threat with an admonition that a possible lack of supplies may bottleneck and push the prices of goods more so especially for the holidays. A long shutdown will mean that shipments of essentially required items like electronics, automobiles, and food products will be clogged in the process, aggravating inflationary pressure.
Some labor experts said the hands-off approach mirrors a broader pro-labor stance from Biden’s administration. The president has been an outspoken advocate for workers’ rights, supporting unionization efforts across the country. Critics, however, say he is playing with fire if he doesn’t act; a major economic disruption that hurts American consumers is at stake.
Both the union and port operators are negotiating, and both want to avoid having the devastating effect possibly generated by a strike. If Biden’s hands-off role will help expedite resolution is yet to be determined.
