Biden’s labor cred faces new challenges

Dockworker negotiations on West Coast represent latest threat to U.S. supply chains

President Joe Biden celebrated avoiding a disaster when the government stopped a railroad shutdown, but another economy-threatening labor dispute looms on the West Coast.

Dockworkers at some of the nation’s busiest ports have worked without a union contract since July 1 with little progress toward a new deal.

Negotiations resumed after Thanksgiving, and both sides have vowed to stay at the bargaining table until a new pact is reached.

A new agreement might not happen until January or early February, said Port of Los Angeles Executive Director Gene Seroka, who isn’t a part of the talks. He said he is “optimistic” about avoiding a service disruption.

But a collapse in talks between the International Longshore and Warehouse Union, representing 22,000 workers, and 70 companies comprising the Pacific Maritime Association would risk a work stoppage that could snarl U.S. supply chains still reeling from pandemic-era disruptions and fuel inflation.

The Biden administration believes there would be serious economic consequences if negotiations go south, according to a senior official.

Key West Coast maritime hubs have already experienced cargo slowdowns in anticipation of disruptions, and a complete shutdown of the ports of Los Angeles and Long Beach alone could cost the U.S. economy about $500 million a day in lost trade, according to the National Association of Manufacturers.

The situation presents a political challenge for Biden, who frustrated key union and Democratic allies by signing legislation to stop a potential rail strike with an agreement that did not include paid sick leave, a key labor demand.

Unlike the rail dispute, in which federal law empowered Congress to prevent a strike, the president could avert a work stoppage without lawmakers’ involvement if port negotiations break down by invoking the Taft-Hartley Act, a Cold War-era law allowing the government to call for an 80-day cooling off period to end labor impasses.

But doing so could spark further criticism of Biden from the left, which questioned his pro-union bona fides during the freight-rail dispute. The last time a president invoked the law’s emergency provisions was 2002, when President George W. Bush used them to end a lockout that resulted in an 11-day shutdown of 29 West Coast ports from Washington State to San Diego.

One industry official, speaking on condition of anonymity, said Biden would likely have to rely on his moral authority, rather than ordering dockworkers to stay on the job using controversial powers that could antagonize union allies.

“Both parties have been working hard to reach a deal, and they have made it clear that they are committed to staying at the table and negotiating in good faith,” said Erika Dinkel-Smith, the White House director of labor engagement. “The administration is in close contact with each side, and we’re confident in their ability to reach an agreement.”

Given the complexity of the contract and the number of different ports and jobs involved, the negotiations may still take months to come to a head or reach a resolution, said Larry Cohen, former president of the Communications Workers of America.