At least 45 container ships stuck outside major U.S. ports White House presses employers for pay hikes Port employers signal openness to new negotiations Ship backlog could double by weekend Analysts say there is
NEW YORK/WASHINGTON (Reuters) – President Joe Biden on Thursday said he expected progress in a longshoreman contract dispute as a strike by longshoremen on the U.S. East Coast and Gulf Coast entered its third day. Showed.
“I think we’re making progress,” Biden told reporters Thursday, without providing details. “You’ll find out soon.”
The strike, the largest of its kind in nearly half a century, has blocked container ships from unloading from Maine to Texas, threatening shortages of everything from bananas to auto parts and forcing ships outside major ports. Vessels at anchor are stuck.
The International Longshoremen’s Association had called for a 77% wage increase from $30 an hour to $69 an hour over six years, but the United States Maritime Alliance (USMX) employers’ group previously raised that offer by nearly 50%. It was raised to
People briefed on the matter said it appears the ILA and employers have narrowed the pay gap as they worked toward an agreement, but the USMX and ILA did not respond to requests for comment.
There are growing concerns about the impact of a prolonged strike. The governors of New York, New Jersey, Massachusetts and Maryland, all of which have been affected by the port closures, said in a joint statement Thursday that they are “committed to quickly reaching a fair agreement that respects workers and secures trade through our ports. is important,” he said. ”
At least 45 container ships were stuck outside strike-hit East Coast and Gulf Coast ports by Wednesday, unable to unload, before the strike began Sunday, according to Everstream Analytics. This is an increase from just three ships.
The ILA launched a strike by 45,000 longshoremen on both coasts on Tuesday after negotiations for a new six-year contract broke down, marking the first major work stoppage since 1977.
In addition to significant wage increases, the ILA is seeking a commitment to halt port automation projects it fears will eliminate jobs. ILA said previous USMX proposals were insufficient to address concerns.
The Biden administration is siding with unions, citing the shipping industry’s huge profits since the COVID-19 pandemic and pressuring port employers to raise their offers to secure deals. is being applied.
But the administration has repeatedly resisted calls from industry groups and Republican lawmakers to use federal authority to call off the strike, a move that would sway the union’s Democratic support ahead of the Nov. 5 presidential election. It will be damaged.
“The president needs to be more proactive here,” Republican Sen. Shelley Moore Capito of West Virginia told CNBC.
The National Retail Federation on Wednesday joined 272 other trade groups in calling on the Biden administration to use its authority to end the strike, saying it could have “catastrophic consequences.”
The strike affects 36 ports, including New York, Baltimore and Houston, which handle a variety of containerized cargo.
Economists say the port closures will not initially cause consumer prices to rise, as businesses have accelerated shipments of key goods in recent months. But economists at Morgan Stanley say a prolonged shutdown will eventually sink in, with food prices likely to be the first to react.
“After the first week, some impact is expected on fresh produce such as bananas, other fruits, seafood and coffee, which means fewer products reaching consumers and potentially higher prices. said Tony Peri, Global Practice Director, Security and Resilience. BSI America.
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Report by Doyinsola Oladipo. Additional reporting by David Shepardson in Washington. Written by Richard Valdmanis. Editing: Sonali Paul and Jonathan Ortiz
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