President Biden is calling for a quick resolution to the strike by tens of thousands of United States dockworkers that threatens to have a significant impact on the country’s economy. The dockworkers, members of the International Longshoremen’s Association, are demanding higher wages and better protections, with containers at 36 ports from Maine to Texas piling up as negotiations with the United States Maritime Alliance stall.
Experts warn that the strike could result in billions of dollars being drained from the US economy each week, potentially leading to higher inflation and economic losses. The White House has urged the port employers to engage with the workers’ demands, with President Biden criticizing the owners for making significant profits during the pandemic while not adequately compensating their employees.
Transportation Secretary Pete Buttigieg has also called for the companies to make more concessions in order to reach a resolution. While a short-term strike may have minimal effects on consumers, analysts warn that a prolonged stoppage could have lasting damage on the economy and supply chains.
President Biden has the authority to order the union members back to work under the Taft-Hartley Act, but has refrained from doing so as he aims to support workers and unions. Amid the standoff, the administration is also monitoring for potential price gouging by foreign ocean carriers that may benefit from the strike. The stakes are high as the standoff continues, with the potential for significant economic consequences if an agreement is not reached soon.
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