Biden won't block potential strike at East Coast ports that could 'cripple' US economy

United States President Joe Biden does not intend to invoke a federal law to prevent a port strike on the East Coast and Gulf of Mexico if dockworkers fail to secure a new labor contract by an October 1 deadline, an administration official said on Tuesday.

The International Longshoremen's Association, negotiating on behalf of workers at three dozen US ports from Maine to Texas that handle about half of the nation's seaborne imports, has warned that its members are prepared to stop work if they do not have a contract by then.

Their current six-year agreement with the United States Maritime Alliance (USMX) expires on Sept 30.

The port strike could potentially "cripple" the US economy because of the volume of imports handled at those locations.

US presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act, forcing workers back on the job while negotiations continue.

"We've never invoked Taft-Hartley to break a strike and are not considering doing so now," the Biden administration official told Reuters.

Talks between the ILA and USMX have stalled over issues ranging from wages and benefits to terminal automation.

"We encourage all parties to remain at the bargaining table and negotiate in good faith," the Biden official said.

The National Retail Federation on Tuesday led a group of 177 trade associations representing retailers like Walmart, manufacturers, farmers, auto makers and truckers in calling on Biden to help reach a resolution.

Last summer, Biden dispatched Acting Labor Secretary Julie Su to help negotiate a crucial contract deal between US West Coast seaport employers and their union workers, following labor disruptions at some busy California port terminals.

Both sides had agreed to keep talking after their July 1, 2022, deadline because the COVID pandemic cargo boom was jamming up critical supply chains and stoking inflation.

Their June 2023 deal secured a 32% pay increase for workers and was expected to be a template for labor talks on the East and Gulf coasts.