‘Stay out of it’: New hazard emerges for Harris, Trump amid port worker strike
A prolonged work stoppage may lead to increased prices and delays in the importation of automobiles, bananas, and even Christmas decorations.
If Biden intervenes to prevent the strike, similar to his actions two years ago with rail workers, it may alienate labor voters from Harris. She is working to strengthen her appeal among blue-collar workers who could influence the election in key swing states. Conversely, allowing a prolonged work stoppage could lead to increased consumer prices and delays in imports of essential goods such as automobiles, bananas, and even Christmas decorations.
A strike could commence as early as Tuesday if the International Longshoremen’s Association fails to secure a deal with the coalition of companies managing over a dozen major ports along the Eastern Seaboard and Gulf Coast. At present, neither side is close to reaching an agreement.
Harold Daggett, president of the longstanding union, has indicated his readiness to escalate the situation if the United States Maritime Alliance does not propose significant wage increases and protections against automation threatening union jobs.
Biden's administration has stated that he will not exercise his executive powers to halt any potential ILA strike. "My advice is to stay out of it," Marty Walsh, former Boston mayor and Labor Secretary, noted regarding the situation. "You don’t have to get involved until both sides ask. Encourage both sides to stay in conversation."
Other Democrats have expressed their concerns as well. "We gotta find a deal," said Virginia Sen. Tim Kaine, whose state hosts one of the largest ports on the East Coast. "I’m not gonna give ‘em advice about how to do it, but it would be a bad thing for Virginia and for the country to have a strike."
White House spokesperson Robyn Patterson emphasized that Biden is urging “all parties to come to the bargaining table,” with senior officials from the White House, Labor Department, and Transportation Department relaying this message to both the union and USMX members.
For Harris, the labor conflict complicates her position by pitting her pro-union beliefs against the business-friendly economic strategies she has presented since she took the lead in the Democratic presidential race. While the vice president has garnered support from major private sector unions, she has encountered pushback from some rank-and-file members and the Teamsters’ leadership.
Former President Donald Trump may utilize the economic chaos resulting from a strike to bolster his narrative that the Biden administration has led to high consumer prices and supply chain troubles. Democrats might counter by referencing Trump’s labor policy history, including comments about firing striking workers, to mitigate his efforts to appeal to working-class voters.
The economic impact of an ILA strike is hard to estimate and would vary based on its duration. The ports affected stretch from New York to Houston and account for over half of the nation’s port capacity, according to the Mitre Corporation. The agricultural imports and exports managed by these ports are valued at approximately $1.4 billion weekly, based on data from the American Farm Bureau Federation.
JPMorgan analysts have suggested that the financial repercussions of strike-induced closures could reach $5 billion per day. In contrast, Container xChange estimates the daily economic hit at around $1 billion. Additionally, Maersk has announced service disruption surcharges for cargo traffic at the affected terminals.
The extent to which these costs will impact consumers hinges on both shipping delays and current retail inventories, according to Seth Harris, a former acting labor secretary who advised Biden’s administration. He mentioned that companies have been proactively increasing shipments ahead of the potential disruption and redirecting cargo to unaffected West Coast ports.
Seth Harris added that he does not anticipate immediate price hikes "unless there is price gouging, and that could very well serve the Vice President’s interests, because that is a central part of her” economic messaging.
The economic turmoil resulting from an extended strike would inevitably prompt challenging questions about how both Harris and Trump would react in similar situations.
Harris has historically received support from labor organizations — having led a White House task force on organizing and participated in a picket line with Nevada autoworkers in 2019. Despite this, her presidential campaign has aimed to enhance her appeal among working-class voters in the Rust Belt, where the electoral outcome is likely to be determined. She has established a firm stance against Nippon Steel’s acquisition of U.S. Steel and held campaign events at union halls in the Midwest, stressing her unwavering support for workers and unions.
Nonetheless, her campaign has also sought the backing of significant donors from Silicon Valley and Wall Street, who have shown opposition to Biden administration regulators focused on workplace protections. If the ILA does strike, it may prompt her to clarify her "real, specific ties" to labor initiatives, as noted by Alí Bustamante, director of the worker power and economic security program at the Roosevelt Institute, a progressive think tank.
An ILA strike could expedite the timeline for her to make crucial decisions that will signal her commitment to the labor community, Bustamante remarked.
Trump's allies anticipate that he will seize the opportunity to broaden his appeal among union voters amid a work stoppage. Daggett, who previously endorsed Biden in 2020, mentioned a "productive" meeting with Trump at Mar-a-Lago this past summer, underlining his longstanding relationship with the former president.
An ILA strike “will give voters, particularly union voters, yet another reason to want a historically successful dealmaker back in the White House,” stated Jonathan Berry, a former top Labor Department official under Trump and current managing partner at the law firm Boyden Gray.
Meanwhile, Trump's history with labor issues could serve as a significant vulnerability for Democrats looking to enhance Harris' reputation among unionized workers. His protectionist trade policies have somewhat eroded the Democratic Party's dominance with blue-collar workers, yet his first-term agenda restricted workers' ability to organize.
The potential ILA strike could emerge shortly after his controversial comments about firing striking workers during a recent interview with Musk, who may play a role in Trump’s prospective administration.
Public sentiment towards unions is at its highest since the mid-1960s, according to Gallup polling. If Trump implies that Biden and Harris should intervene to maintain supply chains during an ILA strike, it could weaken his standing with conservative union voters.
“Trump ran the most vehemently anti-union administration that we’ve seen,” remarked Steve Rosenthal, a strategist and former political director for the AFL-CIO. “The contrast is clear.”
Contributions to this report were made by Sam Ogozalek, Ry Rivard, and Mike Lee.
Olivia Brown for TROIB News