United States President Joe Biden is calling for a quick resolution to the ongoing dockworkers strike that has brought shipments at major eastern ports to a standstill. Tens of thousands of dockworkers from the International Longshoremen’s Association are demanding higher wages and better protections from their employers, the United States Maritime Alliance. The standoff, which could potentially last weeks, is expected to cost the US economy between $4.5bn and $7.5bn per week, according to market forecasters.
President Biden has urged both sides to come to the table and reach a deal, expressing concern over the economic impact of the strike on the country. He criticized the profits made by ocean carriers during the pandemic and called for fair compensation for the workers who kept their businesses running.
While a short-term strike may have minimal effects on consumers, analysts warn that a prolonged standoff could lead to increased inflation and economic losses. The President has the authority to order the union back to work under the Taft-Hartley Act, but has not taken such action, emphasizing his support for workers and unions.
In the midst of the strike, Biden has instructed his team to monitor for potential price gouging by foreign carriers and has expressed his commitment to protecting American workers. The longer the standoff continues, the more severe the economic damage is expected to be, with impacts on the supply chain and inflation.
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