(AFP) – Shippers and striking US dockworkers are closer to agreeing on economic terms than they realize, Secretary of Transportation Pete Buttigieg said Wednesday. “We actually think the parties, economically, are not as far apart from each other as they may think,” Buttigieg told CNBC a day after the International Longshoremen’s Association (ILA) launched a strike at major East and Gulf Coast ports.
“They’re the ones who need to get to the table, work it out, reach a deal and get those ports back,” Buttigieg said. About 45,000 workers walked off their port jobs early Tuesday, having failed to reach a new agreement with the United States Maritime Alliance (USMX), which represents shipping companies and terminal operators, by the Monday night deadline. The union is pressing for protections against automation-related job loss and for hefty wage hikes after dockworkers kept providing essential services throughout the Covid-19 pandemic.
Buttigieg said in his travels to Europe, he had seen examples of port upgrades that were “implemented in partnership with their trade unions in a way that didn’t lead to any job loss.” An ILA spokesman said Wednesday afternoon there were no updates on the negotiations front. The USMX did not immediately respond to a request for comment.
Buttigieg echoed other Biden administration officials who have called for the shipping companies to step up with a better offer after a stretch of huge profits. “We’re talking about an industry that got unbelievable profits,” Buttigieg said, citing one year in which global shippers made $220 billion. “They are certainly in a position to be able to include workers to participate in this profitability. They could end this tomorrow.”
Analysts caution that a lengthy strike could pose a major headwind to the US economy, leading to shortages of some items and lifting costs at a time when inflation has been moderating. A lengthy strike would also increase calls for a White House intervention to end the strike, which comes in the final weeks of a contentious US presidential campaign.
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