Democrats escape no-win situation as port strike deal concludes

According to sources familiar with White House deliberations, it was the quiet—but ultimately public—pressure applied by President Joe Biden and his team that played a crucial role in finalizing the agreement.

Democrats escape no-win situation as port strike deal concludes
A dockworkers strike that posed a significant threat to the U.S. supply chain just weeks before an election has ended only a few days after it began. White House officials attributed the quick resolution to weeks of discreet engagement with both parties, highlighted by President Joe Biden's public efforts to urge shipping companies to negotiate a deal.

On Thursday evening, the union representing tens of thousands of East Coast dockworkers and the shipping industry announced a tentative agreement on wages and an extension of an expired contract through January 15. This resolution alleviates a pressing political issue for Democrats, especially for Vice President Kamala Harris, who requires robust union support but could not afford a prolonged strike that could negatively influence voter perceptions of the economy.

“Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” stated the International Longshoremen’s Association and the coalition of shipping companies employing dockworkers.

Details of the agreement were not immediately disclosed, but a significant wage increase is anticipated for union members, many of whom already earn substantial salaries, reaching six figures annually. These workers are responsible for loading and unloading cargo containers at ports along the East Coast and the Gulf of Mexico, a vital link for goods such as automobiles and bananas.

“Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” Biden remarked in a statement. “I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic.”

Upon returning from a tour of hurricane damage, Biden informed reporters that his team had been diligently working on the situation. Acting Labor Secretary Julie Su visited ILA headquarters on Thursday morning and remained with the involved parties throughout the day, according to sources familiar with the events.

“With the grace of God ... it’s going to hold,” Biden commented.

Several individuals familiar with the White House's perspective indicated that the administration had been actively involved in discussions for the past month, ultimately intensifying pressure on shipping companies after the dockworkers initiated their strike. Sources shared insights into private conversations under conditions of anonymity.

On Monday evening, Biden reached out to ILA leader Harold Daggett to express support and to push the United States Maritime Alliance, the representative of shipping companies, for a better offer.

Despite the union's strike beginning on Tuesday morning, Biden believed that the alliance, referred to as USMX, could have avoided the situation. He aimed to escalate pressure on the shippers, issuing a statement in clear support of the union while criticizing the largely foreign-owned shipping companies for their record profit margins. This public pressure reportedly unsettled the ocean carriers, leading them to express concerns.

Part of the administration's message to the shipping companies emphasized their patriotic duty to reopen ports to facilitate recovery from Hurricane Helene, sources mentioned.

The strike brought an unusual moment of political unity, with Biden, Harris, and former President Donald Trump all denouncing the foreign shipping companies dominating trade routes. This shared frustration served as further evidence that both parties recognize the importance of blue-collar worker support in the upcoming November elections.

Daggett, a prominent figure during the strike, has previously warned about disruptions to the supply chain and criticized the European and Asian companies involved. However, not all attention on him was favorable; reports of his high salary, expensive tastes, and alleged mob connections drew criticism. Elon Musk made headlines by posting on X that “Dude had more yachts than me!”

On Wednesday, the ILA reported that Daggett and other union leaders faced death threats and issued a legal warning against the New York Post for publishing photographs of Daggett's residence.

Prior to the strike, shipping companies proposed nearly a 50 percent wage increase distributed over six years, but the union rejected this offer.

Any outcome resembling those figures would significantly surpass what a separate union representing West Coast dockworkers gained in a new contract last year and could set new precedents for similar demands from powerful industrial unions nationwide.

A party familiar with the negotiations mentioned that automation remains a contentious issue, as the ILA is opposed to technology potentially replacing its workers.

Daggett has expressed strong concerns about the risks posed by robotic automation. Picketing dockworkers brandished signs at ports nationwide this week proclaiming, “Machines don’t feed families.”

New York Governor Kathy Hochul, a Democrat and representative of a state housing part of the East Coast's largest port, expressed hope for a lasting agreement between the two parties soon.

“Now that the International Longshoreman’s Association has decided to suspend their strike action while negotiations continue, I continue to urge USMX and the ILA to reach an agreement that respects the rights of workers and ensures a permanent flow of goods,” she stated.

Major business organizations and some Republicans appealed to the White House to invoke the 1947 Taft-Hartley Act, which grants the president emergency powers to seek court injunctions to momentarily end strikes.

However, Biden consistently dismissed this approach, placing his trust in the collective bargaining process to yield swift results.

Taft-Hartley is widely viewed unfavorably by labor unions, which consider it a tool that undermines their leverage in negotiations.

Utilizing it would have effectively diminished labor unions’ enthusiasm toward Harris, with the intention of mitigating disaster from a lengthy strike—a gamble Biden ultimately chose to avoid.

This development coincides with the announcement from the International Association of Fire Fighters, which stated it would withhold an endorsement in the presidential election, disappointing for Harris following a similar decision from the influential International Brotherhood of Teamsters.

These recent snubs have reportedly frustrated Harris's allies, who observe that while Trump appointed anti-union officials to key labor positions, Biden and Harris have significantly strengthened workers' power and unions, arguably more than any Democratic administration in recent history.

Rohan Mehta contributed to this report for TROIB News