The White House supports the union as the longshore workers’ strike enters its second day

NEW YORK, Oct 2 (Reuters) – President Joe Biden’s administration increased pressure on U.S. port employers to increase their bid for a labor contract with longshoremen who went on strike for a second day on Wednesday, knocking out half of the country’s maritime shipping industry country was paralyzed.

More than 38 container ships were already stuck at U.S. ports as of Tuesday, compared to just three on Sunday before the strike, according to Everstream Analytics.

“Foreign shipping companies have made record profits since the pandemic as dock workers put themselves at risk to keep ports open. “It’s time for these shipping companies to offer a strong and fair contract that reflects ILA workers’ contributions to our economy and their record profits,” Biden said in a post on X late Tuesday.

He directed his team to monitor possible price gouging activities that benefit foreign shipping companies, the White House said.

The ILA, which represents 45,000 longshoremen, began its strike shortly after midnight on Tuesday after negotiations with the United States Maritime Alliance (USMX) over a new six-year contract failed.

USMX had offered the union a 50% wage increase, but passionate ILA leader Harold Daggett said the union was pushing for more, including a $5-an-hour increase for each year of the new six-year contract and an end to port automation projects endangering union jobs.

“We are prepared to fight as long as necessary, to endure the strike as long as possible, to get the wages and anti-automation protections that our ILA members deserve,” Daggett said Tuesday.

Hundreds of longshoremen demonstrated outside a New York City-area shipping terminal in Elizabeth, New Jersey, on Tuesday, carrying signs and chanting slogans like “ILA all the way!” as music blared and vendors offered food.

Trump on Tuesday blamed the strike on inflation, which he said was caused by the Biden-Harris administration.

“Everyone understands the longshoremen because they have been decimated by this inflation, just like everyone else in our country and beyond,” Fox News Digital quoted Trump as saying in an interview.

“Devastating consequences”

The strike, the ILA’s first major shutdown since 1977, is worrying companies that rely on shipping to export their goods or secure important imports. Affected are 36 ports – including New York, Baltimore and Houston – that handle a range of containerized goods, from bananas to clothing to cars.

The strike could cost the American economy around $5 billion a day, analysts at JP Morgan estimate.

The National Retail Federation called on the Biden administration to use its federal powers to stop the strike, saying the strike could have “devastating consequences” for the economy.

Republicans, including Virginia Gov. Glenn Youngkin, also called on Biden to end the strike and warned of its impact on the economy.

Biden has repeatedly said he will not do so.

The U.S. Department of Agriculture said Tuesday it does not expect any significant changes in food prices or availability in the near future.

And retailers, which account for about half of total container shipping volume, said they have been diligently implementing backup plans to minimize the impact of the strike as the winter holiday season begins.

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