WASHINGTON — President Joe Biden broke his silence on the labor dispute between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) by accusing employers of hoarding profits.
“Ocean carriers have made record profits since the pandemic and in some cases profits grew in excess of 800 percent compared to their profits prior to the pandemic,” Biden said in a statement issued by the White House on Tuesday, after the ILA went on strike at 14 ports on the U.S. East and Gulf coasts, halting container and roll-on/roll-off operations at 36 marine terminals.
“Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates. It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”
VIDEO: ILA strike at Port of Houston on Oct. 1
In urging USMX to the bargaining table with an acceptable wage offer, Biden also warned the carriers against taking advantage of supply chain disruptions caused by Hurricane Helene.
“As our nation climbs out of the aftermath of Hurricane Helene, dockworkers will play an essential role in getting communities the resources they need. Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits.
“My administration will be monitoring for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board.”
Among USMX members are foreign-based container ship operators CMA CGM (France), Maersk (Denmark), Cosco (China), MSC (Switzerland), OOCL (Hong Kong) and Evergreen (Taiwan).
The compounding effect of the strike and disruptions caused by the hurricane is raising transportation fears among food producers and retailers.
“There’s never a good time for a strike,” said Food Industry Association President and CEO Leslie Sarasin in a statement on Tuesday.
“Now, the current strike is compounding the horrific situation in the Southeastern United States resulting from Hurricane Helene and parties need to return to the negotiating table.
“This action has already begun to jeopardize food supply chain operations, and the strike has the potential to disrupt the long-term stability of markets and commodities, namely pharmaceuticals, seafood, produce, meat, cheese, ingredients, and packaging.”
White House Press Secretary Karine Jean-Pierre told reporters on Tuesday that the strike is not yet hindering relief and recovery efforts related to the hurricane because emergency supplies had been positioned ahead of the storm.
She said the administration has stood up the Supply Chain Disruptions Task Force, created by the White House in 2021 in the wake of the pandemic, to monitor the situation.
“We are engaged extensively with labor, industry, state and local officials, ocean carriers, rail and truck companies, including multiple meetings with retailers, grocers, manufacturers, and agriculture,” Jean-Pierre said. “We are assessing ways to address any concerns, if necessary.”
On whether that would include ordering the union workers back to work by invoking the Taft-Hartley Act, “We have not used Taft-Hartley and we’re not planning to,” she said.
Related articles:
- Poll by US Chamber finds voters want Biden to halt potential port strike
- Port strike could throttle imports from cars to bananas and vaccines
- Union Pacific handling record West Coast container volume in leadup to strike
Click for more FreightWaves articles by John Gallagher.
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