Former U.S. Secretary of Commerce Wilbur Ross responded to shippers making counteroffers to the ILA on Craman Countdown.
Unionized longshoremen at 36 ports on the Eastern and Gulf Coast went on strike early Tuesday as negotiations over a new contract with groups representing port employers stalled.
The International Longshoremen's Association (ILA), which represents 45,000 longshoremen, said its six-year contract with the United States Maritime Alliance (USMX), which represents port employers, expired on Monday night. It was the first strike since 1977.
Negotiations between the ILA and USMX have so far stalled over the union's demands for higher wages, compensation and protection from port automation.
The ILA excluded cruise ships and military cargo from the strike and said it would continue to respond to prevent disruption to traveler schedules and national security.
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The longshoremen's strike will affect eastern and Gulf Coast ports. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
The USMX reportedly told the ILA on Monday afternoon that it would raise wages by nearly 50% over the new contract, triple employer contributions to retirement plans and enhanced health care, and add automation language to the contract. He made a new proposal: to leave it in place. ILA rejected the offer and did not dispute it, sources told FOX Business.
The strike comes after USMX filed an unfair labor complaint with the National Labor Relations Board last week, accusing ILA of violating labor laws by refusing to negotiate. The ILA criticized the move as a “publicity stunt” and said USMX should file labor charges against port employers who don't pay port workers better wages.
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As of Monday night, the port's employers and unionized longshoremen were at an impasse in negotiations. (Ilya Nouberge/Bloomberg via Getty Images/Getty Images)
U.S. seaports from Maine to Texas will be affected by the attack. These ports collectively process about half of all imports from the United States, and are also important bases for exports by American companies.
Imports of automobiles, auto parts, agricultural products such as bananas, machinery, processed steel products, furniture, and apparel will be affected. Eastern and Gulf Coast ports handle a significant proportion of exported automobiles and auto parts, pharmaceuticals, beef, pork, poultry, eggs, lumber, plastics, and other products and merchandise.
A JPMorgan analysis estimates that a strike by longshoremen on the East Coast and Gulf Coast would cost the U.S. economy between $3.8 billion and $4.5 billion per day as operations slowed.
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If the port strike continues, the U.S. economy could lose more than $5 billion a day. (Photographer: Luke Charette/Bloomberg via Getty Images/Getty Images)
President Biden said his administration has sought to facilitate talks between the two countries but does not intend to use federal labor law, known as the Taft-Hartley Act, to intervene in the strike. Under the law, Mr. Biden could take steps to create an 80-day “cooling off” period to resume negotiations while workers return to work.
In a letter, the U.S. Chamber of Commerce, the largest trade group representing American businesses, asked Biden to call on Taft-Hartley to avoid work stoppages and “protect our economy.” .
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“Taft Hartley will provide time for both parties to negotiations to reach an agreement on a new labor contract,” Chamber President Suzanne Clark wrote on Monday. “Significant differences remain between USMX and ILA regarding the new contract and cannot be resolved before the current contract expires today.”
FOX Business' Daniel Hillsdon contributed to this report.
