ILA Strike Watch 2024: House Committee Writes Letter to Biden Urging Administration to Aid Negotiations (w/ Full Text)

6 days…

With less than a week before the International Longshoremen’s Association’s (ILA) master contract expires, even the most optimistic people in the international shipping industry expect the union to strike, shutting down all U.S. East and Gulf Coast ports.

That would obviously be a major economic blow for the country. Through these months since the ILA cancelled negotiations in June, refusing to meet at the table or even reschedule contract talks, the White House has been eerily quiet on the subject. Even after the ILA filed for federal mediation near the end of last month, the Biden/Harris Administration has shown no effort to get the ILA to the negotiating table with their employers at the ports, represented by the United States Maritime Alliance (USMX).

Last week, a representative from the administration did finally break its silence on the situation by saying the Biden/Harris Administration would not use the Taft-Hartley Act to stop a strike from the ILA.

With polling numbers indicating a tight presidential race between Vice President Harris and President Trump, the administration clearly does not want to risk upsetting traditionally political allies in the union. The ILA had previously made it clear that it wants no mediation from the Biden/Harris Administration, no matter how poorly negotiations go.

Congress members making up the House of Representatives’ Committee on Transportation and Infrastructure are less concerned about the White House’s political considerations for the union and more concerned with the economic threat an ILA strike represents. They’ve written a letter to President Biden in light of the “devastating economic consequences” an ILA strike would have and the “lack of engagement to date” from the Biden/Harris Administration.

In the letter, they urge the president “to give immediate attention to the matter, to aid in these negotiations, and find a reasonable resolution to these contract disputes.” The committee not merely asks, but expects, “the Administration to provide any and all support it can offer to both parties…” With so little time left, the committee clearly sees how likely a strike is. Without specifically mentioning the Taft-Hartley Act, which the administration said it wouldn’t use, the House committee does “urge the Administration to utilize every authority at its disposal to ensure the continuing flow of goods and avoid undue harm to American consumers and the Nation’s economy.”

It sounds little the committee members are urging President Biden to use the Taft-Hartley Act without explicitly mentioning the act.

The committee copied Vice President Harris on the letter to Biden, along with high ranking administration officials Pete Buttigieg, Secretary of the Department of Transportation; Julie Su, Acting Secretary of the Department of Labor; Gina Raimondo, Secretary of the Department of Commerce; and Tom Vilsack, Secretary of the Department of Agriculture.

Below is the full text of the letter.

Full Text of the House Committee on Transportation and Infrastructure’s Letter to President Biden

September 19, 2024

President Joseph R. Biden Jr.
The White House
1600 Pennsylvania Ave. NW
Washington, D.C. 20500

Dear President Biden:

We write to express our serious concern with the state of the labor contract negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA). Given the devastating economic consequences of a potential strike and the Administration’s lack of engagement to date, we urge you to give immediate attention to this matter, to aid in these negotiations, and find a reasonable resolution to these contract disputes.

The current Master Contract between the USMX and ILA, which stipulates the terms and conditions for employment at ports on the East and Gulf Coasts of the United States, is set to expire on September 30, 2024.¹ Unfortunately, negotiations to reach a new Master Contract between the two parties have seemingly stalled due to several issues, including proposed wage increases for union employees and the adoption of automated technologies at ports.² ILA leadership has warned of a potential work stoppage at East and Gulf Coast ports beginning October 1, 2024, if no agreement is reached, which would result in delays and dire impacts to our supply chains, our economy, and the American consumer.³

The maritime industry has been fraught with uncertainty in operations for several years. The supply chain crisis brought on by the COVID-19 pandemic strained carrier and warehousing capacity, leading to huge delays for unloading cargo at ports and massive increases in freight rates.⁴ Global supply chain pressures were a major driver of inflation during the pandemic, accounting for up to 60 percent of the price surge.⁵ Master Contract negotiations at ports on the West Coast between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) led to uncertainty for continuing operations at West Coast ports, with large cargo volumes being diverted to the East Coast.⁶ Thankfully, many ILWU workers continued working after the expiration of its contract with PMA, and a long-term solution was eventually reached last year.⁷ Additionally, low water levels in the Panama Canal and disruptions in the Red Sea caused by insurgent attacks on commercial vessels have jeopardized once reliable shipping corridors, leading to longer transit times, increasing fuel and operating costs, and higher freight rates.⁸

Now with the potential for further disruption of service at East and Gulf Coast ports, carriers and importers are once again being forced to adjust shipments in anticipation of future delays. Retailers are reportedly accelerating shipments into East and Gulf Coast ports to get ahead of the potential work stoppages beginning in October.⁹ Moreover, cargo volumes are once again being diverted back to the West Coast to avoid the impending situation, further straining port capacity.¹⁰ If a work stoppage occurred at East and Gulf Coast ports in October, estimates suggest that a one-week strike would take until mid-November to recover from and clear the backlog of cargo.¹¹ Estimates further suggest a two-week strike would take until 2025 to fully recover from.¹² Lengthier strikes would have an even greater cascading disruption. Any of these situations would have serious consequences for American consumers and the holiday season.

While we understand issues persist in the contract negotiations between the USMX and the ILA, it is imperative that both parties remain at the bargaining table for as long as necessary to reach an agreement that avoids a work stoppage and the serious negative economic consequences that would follow. We expect the Administration to provide any and all support it can offer to both parties as these negotiations continue. Furthermore, if a strike should occur, we urge the Administration to utilize every authority at its disposal to ensure the continuing flow of goods and avoid undue harm to American consumers and the Nation’s economy.

Sincerely,

Sam Graves
Chairman
Committee on Transportation
and Infrastructure

Daniel Webster
Chairman
Subcommittee on Coast Guard
and Maritime Transportation

Robert B. Aderholt
Member of Congress

Mark Alford
Member of Congress

Rick W. Allen
Member of Congress

Brian Babin, D.D.S.
Member of Congress

Aaron Bean
Member of Congress

Mike Bost
Member of Congress

Vern Buchanan
Member of Congress

Tim Burchett
Member of Congress

Kat Cammack
Member of Congress

Jerry L. Carl
Member of Congress

Earl L. “Buddy” Carter
Member of Congress

Andrew S. Clyde
Member of Congress

Mike Collins
Member of Congress

Eric A. “Rick” Crawford
Member of Congress

Dan Crenshaw
Member of Congress

John Duarte
Member of Congress

Jeff Duncan
Member of Congress

Neal P. Dunn, M.D.
Member of Congress

Mike Ezell
Member of Congress

Brad Finstad
Member of Congress

Vince Fong
Member of Congress

Russell Fry
Member of Congress

Jenniffer González Colón
Member of Congress

Lance Gooden
Member of Congress

Garret Graves
Member of Congress

Mark Green, M.D.
Member of Congress

Michael Guest
Member of Congress

Clay Higgins
Member of Congress

French Hill
Member of Congress

Ashley Hinson
Member of Congress

Dusty Johnson
Member of Congress

John Joyce, M.D.
Member of Congress

Thomas H. Kean, Jr.
Member of Congress

Jen Kiggans
Member of Congress

Kevin Kiley
Member of Congress

Nick LaLota
Member of Congress

Nick Langworthy
Member of Congress

Debbie Lesko
Member of Congress

Frank D. Lucas
Member of Congress

Tracey Mann
Member of Congress

Mary E. Miller
Member of Congress

Marc Molinaro
Member of Congress

Barry Moore
Member of Congress

Gregory F. Murphy, M.D.
Member of Congress

Troy E. Nehls
Member of Congress

Ralph Norman
Member of Congress

Burgess Owens
Member of Congress

Mike D. Rogers
Member of Congress

John Rose
Member of Congress

David Rouzer
Member of Congress

Michael A. Rulli
Member of Congress

Austin Scott
Member of Congress

Adrian Smith
Member of Congress

Glenn “GT” Thompson
Member of Congress

William R. Timmons, IV
Member of Congress

David G. Valadao
Member of Congress

Jeff Van Drew
Member of Congress

Bruce Westerman
Member of Congress

Joe Wilson
Member of Congress

Robert J. Wittman
Member of Congress

Steve Womack
Member of Congress

Rudy Yakym III
Member of Congress

Pete Sessions
Member of Congress

Nicole Malliotakis
Member of Congress

John R. Moolenaar
Member of Congress

Claudia Tenney
Member of Congress

Cory Mills
Member of Congress

cc: Vice President Kamala Harris
The Honorable Pete Buttigieg, Secretary, Department of Transportation
The Honorable Julie Su, Acting Secretary, Department of Labor
The Honorable Gina Raimondo, Secretary, Department of Commerce
The Honorable Tom Vilsack, Secretary, Department of Agriculture

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