Biden Criticizes Ocean Carriers for Unfair Wages to Dockworkers

President Biden Speaks Out on Labor Dispute

President Joe Biden has voiced his concerns over the labor dispute between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). He accused employers of accumulating profits without sharing them fairly with their workers. Biden pointed out in a statement from the White House on Tuesday that ocean carriers have seen record profits since the pandemic, with some profits growing by more than 800 percent compared to pre-pandemic levels. This came after the ILA went on strike at 14 ports on the U.S. East and Gulf coasts, causing a halt in container and roll-on/roll-off operations at 36 marine terminals.

Call for Fair Wages Amid Record Profits

The president noted that executive compensation has increased along with these profits, and shareholders have seen record returns. He argued that it's only fair for the workers, who risked their health during the pandemic to keep ports open, to see a significant increase in their wages. Biden urged the USMX to come to the bargaining table with a fair wage offer. He also cautioned the carriers against exploiting supply chain disruptions caused by Hurricane Helene.

Concerns Over Price Gouging

Biden emphasized the essential role of dockworkers in the recovery from Hurricane Helene, and criticized ocean carriers for refusing to negotiate fair wages while enjoying record profits. He stated that his administration would be watching for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board.

Strike and Hurricane Disruptions Worry Food Producers and Retailers

The combination of the strike and the disruptions caused by the hurricane has food producers and retailers concerned about transportation. Leslie Sarasin, President and CEO of the Food Industry Association, stated that the strike was exacerbating the already difficult situation caused by Hurricane Helene and urged parties to return to the negotiating table.

White House Monitoring the Situation

White House Press Secretary Karine Jean-Pierre informed reporters that the strike has not yet affected relief and recovery efforts related to the hurricane, as emergency supplies had been positioned ahead of the storm. She mentioned that the administration has activated the Supply Chain Disruptions Task Force, established by the White House in 2021 after the pandemic, to monitor the situation. Jean-Pierre added that they are extensively engaged with labor, industry, state and local officials, ocean carriers, rail and truck companies, including holding multiple meetings with retailers, grocers, manufacturers, and agriculture. She confirmed that they are evaluating ways to address any concerns, if necessary.

Use of Taft-Hartley Act Not Planned

When asked if the administration would order the union workers back to work by invoking the Taft-Hartley Act, Jean-Pierre stated that they have not used the Act and are not planning to.

Bottom Line

The current labor dispute between dockworkers and ocean carriers, compounded by the disruptions caused by Hurricane Helene, is a complex issue with far-reaching implications. President Biden's intervention highlights the importance of fair wage negotiations and the critical role of dockworkers in our economy. What are your thoughts on this issue? Do you think the ocean carriers should negotiate fair wages with the dockworkers? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.