Shipping companies 'raking in record profits' and not sharing with striking workers: Biden

01 October 2024

At midnight on Tuesday morning, the International Longshoreman's Association (ILA) went on strike, meaning tens of thousands of port workers are now walking off the job in protest of their employers refusing to meet their demands.

The Associated Press (AP) reported that the ILA's unionized workforce of approximately 45,000 port workers had promised to strike without a new contract that guaranteed workers higher wages and a promise to not automate their jobs. The strike is the ILA's first in 47 years, and affects 36 ports across the country from Maine to Texas.

Now, President Joe Biden is openly siding with the striking workers, and called out the greed of shipping companies in a public statement issued on Tuesday. HuffPost reporter Sam Stein observed that the White House's position is "heavily in favor" of the striking longshoremen.

"Collective bargaining is the best way for workers to get the pay and benefits they deserve. I have urged USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the workers of the International Longshoremen’s Association that ensures they are paid appropriately in line with their invaluable contributions," Biden stated.

"Ocean carriers have made record profits since the pandemic and in some cases profits grew in excess of 800 percent compared to their profits prior to the pandemic," he continued. "Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates. 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 president's reminder of the shipping companies' post-pandemic profits is similar to a previous statement by Sen. Bernie Sanders (I-Vermont), who has long been an outspoken proponent of organized labor and critic of corporate greed. After Biden said he would not be invoking the Taft-Hartley Act of 1947 to break the strike, Sanders praised Biden's commitment to workers' right to strike.

"Dock workers are striking against excessive corporate greed. The shipping industry has made $400 billion in profits since 2020," the Vermont senator tweeted. "It's time for dock workers to be treated with respect, not contempt."

Biden further excoriated the shipping companies for their greed in the wake of Hurricane Helene, which made landfall over the weekend as a category 4 storm and severely impacted infrastructure in several states. He noted that dockworkers having the contract they need is critical for disaster relief.

"As our nation climbs out of the aftermath of Hurricane Helene, dockworkers will play an essential role in getting communities the resources they need. Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits," Biden stated. "My Administration will be monitoring for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board."

The AP reported that despite the strike, consumers will likely be minimally affected despite the upcoming holiday season. Logistics experts told the outlet that shipping companies anticipated a strike and as a result, retailers are fully stocked on most goods throughout the holiday season. However, some fresh produce items like bananas will likely not be on shelves, with most coming into affected ports from Ecuador, Guatemala and Costa Rica.

Click here to read Biden's full statement on Whitehouse.gov.

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