President Biden is urging for a quick resolution to the ongoing strike by tens of thousands of United States dockworkers, which has brought major eastern dockyards to a standstill. The workers, members of the International Longshoremen’s Association, are demanding higher wages and better protections from their employers, the United States Maritime Alliance. The standoff could potentially drain between $4.5 billion and $7.5 billion from the US economy every week if not resolved promptly, according to market forecasters at Oxford Economics.
In response to the strike, White House officials are calling for the two sides to come together and reach a deal. President Biden criticized the ocean carriers for making huge profits during the pandemic and urged them to fairly compensate the workers who made it possible. Transportation Secretary Pete Buttigieg also encouraged the port employers to make more concessions to reach an agreement.
Analysts warn that while a short-term stoppage may have minimal effects on US consumers, a prolonged strike could lead to significant economic damage. President Biden has the authority to order the union members back to work under the 1947 Taft-Hartley Act, but has so far refrained from doing so in line with his pro-union stance.
As negotiations continue, the White House is monitoring for potential price gouging by foreign ocean carriers that could benefit from the standoff. It remains to be seen how the situation will unfold and what impact it will have on the US economy in the coming weeks.
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