A potential dockworkers strike looms over seaports on the East and Gulf Coasts as a labor stoppage could commence on Tuesday. Federal law, however, grants the president the authority to intervene in such labor disputes when they pose a national emergency.
This potential strike is contingent on the expiration of the International Longshoremen’s Association (ILA) contract with the U.S. Maritime Alliance (USMX), which is set to lapse at midnight on Monday. Should the strike occur, operations at 36 ports on the East and Gulf Coasts, which collectively handle about half of the nation’s seaborne imports, could be disrupted. This disruption could delay shipments and economically impact the U.S. by up to $5 billion daily, according to J.P. Morgan analysis.
President Biden has indicated that he does not plan to intervene in the potential strike. The White House released a statement urging both parties to continue negotiations and noted that the administration is evaluating ways to mitigate supply chain disruptions.
Despite his current stance, Biden has been urged by the National Retail Federation and 177 trade groups representing various sectors, including retailers, manufacturers, farmers, automakers, and truckers, to facilitate negotiations and avert disruptions. The Taft-Hartley Act provides him the authority to intervene if necessary.
The Taft-Hartley Act, enacted in 1947 as an amendment to the National Labor Relations Act, includes provisions for resolving labor disputes that constitute a national emergency. Per the Congressional Research Service (CRS), the act allows the president to intervene in a labor dispute that threatens or results in a strike or lockout affecting a significant part of an industry engaged in trade, commerce, transportation, or communication, which would imperil national health or safety.
Upon determining such a threat, the president can appoint a board of inquiry (BOI) to examine the labor dispute and produce a report. Following receipt of this report, the president may direct the attorney general to seek an injunction through a federal district court to halt the strike or lockout. If granted, this injunction initiates an 80-day “cooling-off” period during which employees return to work while both parties attempt to resolve their differences through negotiation.
If no agreement is reached 60 days after the injunction, the BOI submits a report detailing the employer’s offer and both parties’ positions to the president. The National Labor Relations Board then conducts a secret ballot for employees to accept or reject the offer. The results are reported to the Department of Justice within five days, and based on the outcome, the dispute may either be resolved or further negotiations may continue.
Since its enactment, the Taft-Hartley Act has been invoked 37 times for presidential intervention in labor disputes, most recently in response to a West Coast port dispute in October 2002, during President George W. Bush’s tenure.
Earlier this month, the White House noted that President Biden has never invoked Taft-Hartley to break a strike and is not considering doing so now. The administration supports ongoing negotiations between the conflicting parties.
White House Assistant Press Secretary Robyn Patterson reiterated this in a statement. Patterson elaborated that the Biden-Harris Administration has developed a comprehensive approach to monitor and mitigate supply chain impacts and is assessing ways to address potential disruptions at ports if necessary.
FOX Business’ Edward Lawrence contributed to this report.