The US port strike has entered its second day and President Biden has seemingly come down on the side of the strikers, by urging port operators to pay a fair increase.
Despite the government not taking up their special powers to intervene ahead of the strike, Biden’s statement seemed to be very much pointed at the United States Maritime Alliance (USMX).
Biden has targeted the profits made by ocean freight carriers during the pandemic, saying “in some cases profits grew in excess of 800% compared to their profits prior to the pandemic. Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates”.
Adding “It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”
The USMX argue that their most recent offer is fair, which reportedly included pay rises of around 50%, However, the union is apparently seeking raises of 77% over the six-year contract, rising to a top rate of $69 an hour by 2030.
With the US election being just over a month away, there had already been suggestions that the strike may be politically motivated, and now we have the peculiar situation where a sitting US president is effectively backing a strike that will be damaging for the US economy.
Meanwhile, there is nothing to suggest the two sides are back around the table yet. As ever, we are monitoring the situation closely.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
