President Biden is not expected to intervene in a potential strike by dockworkers at East Coast and Gulf Coast ports if a labor agreement isn’t reached by the October 1 deadline.
The International Longshoremen’s Association (ILA), representing 45,000 workers at 36 ports from Maine to Texas, has warned that its members are ready to halt work without a new contract.
The ILA’s current contract with the US Maritime Alliance (USMX) expires on September 30. Negotiations are stalled over issues like wages, benefits, and port automation, creating the possibility of a strike that could cost the US economy an estimated $5 billion per day.
Despite the potential impact, a Biden administration official said the president does not plan to invoke the Taft-Hartley Act, which could impose an 80-day cooling-off period to prevent a strike. Instead, the administration is urging both sides to continue negotiating in good faith.
This approach follows similar handling of last year’s West Coast port labor dispute, where Biden avoided direct intervention. However, industry leaders, including the National Retail Federation, are pressing the president to help secure a resolution, citing the broader economic risks.
If the strike proceeds, it could disrupt key supply chains, especially for industries relying on seasonal and industrial imports. However, some experts believe that high inventory levels may mitigate the immediate impact. The situation remains fluid as the October 1 deadline approaches.
The Associated Press, FOX Business, and Reuters contributed to this report.
