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Tens of thousands of dockwockers on the Eastern Seaboard, from New England to Texas, went on strike Tuesday, shutting down 14 ports. If it lasts long, it could have major consequences for the economy and the election. The dispute is between the International Longshoremen's Association (ILA) and the shippers and port operators, united in the United States Maritime Alliance (USMX).
USMX has offered 50% raises to the dockworkers, but they want 60%. And that isn't really the biggest issue. USMX wants more automation at the ports and the workers most definitely do not want to hand their jobs over to robots. Agreeing over the money is probably doable, but the automation is going to be a tough nut to crack.
Large retailers, like Walmart and Costco, saw this coming and made plans, either accelerating shipments to have their warehouses fully stocked or rerouting shipments to West Coast ports. That is more expensive, but for companies their size, it is manageable. For smaller importers, cutting the supply chain could be fatal. Imagine a mom & pop store selling unique imported Christmas tree decorations that can no longer get any products from its usual suppliers in Europe.
Different ports handle different types of products. Baltimore and Brunswick, GA, handle imported cars, Philadelphia handles produce, and New Orleans handles coffee, chemicals, and wood products. They have specialized infrastructure to process their certain kinds of products. However, most likely, all the ports will stay closed until there is a settlement, then they will all open at the same time.
Joe Biden desperately does not want the strike to go on for long. He has backed the workers and put pressure on USMX. He tweeted: "Foreign ocean carriers have made record profits since the pandemic, when longshoremen put themselves at risk to keep ports open. It's time those ocean carriers offered a strong and fair contract that reflects ILA workers' contribution to our economy and to their record profits."
In the short run, the strike won't affect consumers much, but if it goes on for a month, some items, including fruit, veggies, coffee, and other food items may become scarce, which will drive the price up. The last thing the President wants is for inflation to rear its ugly head just before the election. Biden has touted himself as the most pro-union president in history, and indeed, he walked the picket line during the auto strike. If he maintains this position, it could make union members in the three crucial Rust Belt states look more favorably on him.
For Kamala Harris, it is a tougher call. She is trying to bat down all the Republican screaming that she is 1,000 miles to the left of Leon Trotsky. She claims to be business friendly. That could coax some Nikki Haley voters to vote for a Democrat just this one time. But she also needs those union members in the Rust Belt and supporting USMX is definitely not the way to do this. They want her to walk the picket line. But if she does this, there go those disaffected Republicans. What's a candidate to do? Pray?
Or maybe talk to Joe. The president has the power to invoke the 1947 Taft-Hartley Act, which would force the striking workers to return to the negotiating table for 80 days in the hopes of reaching an agreement. That would push the strike past the election. However, union members generally don't like Taft-Hartley, since it (temporarily) negates their biggest power: going on strike. As a pro-union president, Biden does not want to invoke Taft-Hartley for the first time since 2002. It pits his legacy against her election. Nevertheless, he is not just sitting around and hoping for the best. He has asked Transportation Secretary Pete Buttigieg and acting Labor Secretary Julie Su to keep abreast of developments and lend a hand if asked. (V)