Dockworkers strike worries manufacturers

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A strike by port workers at East and Gulf Coast ports has raised calls for President Joe Biden to implement the Taft-Hartley Act.

The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight, according to the Associated Press. The strike affecting 36 ports is the first by the union since 1977.

The dockworkers are seeking better wages and protection from automation.

The Taft-Hartley Act authorizes the president to order the workers back to work while the National Labor Relations Board oversees negotiations to end the labor dispute. Biden has indicated he will not invoke the provisions of the Taft-Hartley Act.

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National Association of Manufacturers President and CEO Jay Timmons said, “There will be dire economic consequences on the manufacturing supply chain if a strike occurs for even a brief period. NAM estimates show a strike at the East and Gulf Coast ports would jeopardize $2.1 billion in trade daily, and the total economic damage could reduce GDP by as much as $5 billion per day.

Experts have said there will be no immediate impact for consumers because retailers have stocked up ahead of the holiday shopping season, but some commodities such as fresh fruit, coffee and tea, could be immediately impacted. Manufacturers are concerned about both imports and exports with medical instruments, paper products, vehicles and parts among those that could be affected.

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