US Labor department reaches out to employer group amid possible port strike

(Reuters) - The U.S. Department of Labor has reached out to the United States Maritime Alliance ahead of a possible ports strike on the East Coast and Gulf Coast by the International Longshoremen's Association, the employer group said on Monday.

The Department of Labor's involvement suggests the Federal government appears to be willing to intervene and ensure an agreement between the parties.

The strike, which could start as early as October 1, could result in the closure of some of the busiest ports in the U.S., including the port of New York and New Jersey which handles 15,000-16,000 TEUs in and out of the port each day.

These ports, stretching from Maine to Texas, handle approximately 50% of U.S. imports.

This is not the first time the Biden administration has intervened in labor negotiations.

Following labor disruptions at California ports last summer, President Joe Biden sent Acting Labor Secretary Julie Su to negotiate a pivotal contract between U.S. West Coast seaport employers and union workers, resulting in a 32% pay increase that was anticipated to set a precedent for East and Gulf Coast labor talks.

USMX, a non-profit association representing employers in the East and Gulf Coast longshore industry, has expressed willingness to collaborate with the Federal Mediation & Conciliation Service in contract negotiations - contingent on both parties agreeing to mediation.



The alliance, which negotiates labor contracts for its members, said it has been unable to schedule a meeting with the ILA to continue talks on a new Master Contract.

The ILA did not immediately respond to a Reuters request for comment.

Source: Investing.com