The United States President Biden has urged for a quick resolution to the ongoing strike by tens of thousands of dockworkers, which is threatening to drain billions from the US economy. The strike, which is in its second day, has left shipments at major eastern dockyards at a standstill, with containers piling up at 36 ports stretching from Maine to Texas. The workers, part of the International Longshoremen’s Association, are demanding higher wages and better protections.
Experts project that the standoff could result in economic losses ranging from $4.5 billion to $7.5 billion per week. The White House is pushing for both parties, the dockworkers and the United States Maritime Alliance, to reach a deal to end the strike. President Biden has called on the ocean carriers to fairly compensate the workers who have helped their businesses thrive during the COVID-19 pandemic.
While a short-term stoppage may have minimal effects on consumers, analysts warn that a prolonged strike could have more serious consequences for the economy and the supply chain. President Biden has the authority to order the union members back to work under the Taft-Hartley Act, but has so far refrained from doing so. Instead, he has emphasized his support for unions and has directed his team to monitor for potential price gouging by foreign ocean carriers during the standoff. The President’s administration is working to bring both parties back to the negotiating table in order to find a resolution to the strike.
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