Immediate Action Urged by Business Coalition to Resolve Port Strike Crisis

Business Coalition's Plea to Biden Amid Port Strike

In a show of unity, nearly 300 trade associations have called on President Biden to take immediate action to resolve the unprecedented strike at ports along the East Coast and Gulf of Mexico. This strike commenced with tens of thousands of longshoremen walking off the job on Tuesday, sparking fears of significant economic disruptions.

Economic Impact and Urgency

As businesses act to mitigate logistical issues, the potential economic fallout from this strike is anticipated to reach as high as $5 billion per day. A collective letter from various trade associations highlights the immediate need for action, stating: “Given the dire situation and the massive negative ramifications for our industries and the economy, we implore you to take immediate action to resolve this situation expeditiously.”

Trade Associations Involved

• Alliance for Automotive Innovation
• Business Roundtable
• Distilled Spirits Council of the U.S.
• National Association of Manufacturers
• National Association of Wholesaler-Distributors
• National Retail Federation

According to Eric Hoplin, CEO of the National Association of Wholesaler-Distributors, “No organization should have the power to cripple the entire economy”, signifying the urgent need for intervention before severe consequences materialize.

Negotiation Stalemate and Possible Solutions

While the letter implies possible recourse through the Taft-Hartley Act, it does not explicitly request its invocation. President Biden has refrained from using this measure, which gives him authority to mandate an 80-day “cooling off” period for negotiations. Longshoremen demand wage increases and safeguards against automation.

Need for Federal Mediation

The business groups contend that the only way to secure a new deal is for both parties to resume negotiations, facilitated by a federal mediator. They maintain that federal intervention is required not only to reopen ports but also to resolve lingering contract issues.