Toy Association Urges Biden Administration to Intervene in East Coast Port Labor Dispute

September 16, 2024 | As East Coast and Gulf Coast longshore labor negotiations between the International Longshoremen’s Association (ILA) and U.S. Maritime Alliance (USMX) continue to stall, The Toy Association has again called on the Biden Administration to remain fully engaged in coaxing the two sides to find a quick resolution to the dispute. The ILA is prepared to strike over issues like automation and wages starting October 1, which would affect all maritime ports along the East and Gulf coasts, if a new deal is not reached before the current contract expires on September 30.

A coalition of more than 150 trade groups and businesses, including The Toy Association, will submit a letter to the White House on September 17 stressing that there has been little to no progress toward a new long-term agreement and that one is needed to ensure there are no further disruptions to port operations and cargo fluidity. The coalition urges the administration to encourage both parties to stay at the bargaining table and use all available resources to protect the economy should a strike occur.

“One of the most critical areas of concern should work stoppage occur in two weeks is that ports on the East and Gulf Coasts do not plan on diverting cargo ships back to their original locations, which means ships could potentially remain idle in the Atlantic Ocean for an indefinite period — further exacerbating supply chain disruptions and delays,” said Ed Desmond, executive vice president of global government and regulatory affairs at The Toy Association.

The ILA represents 85,000 longshore workers along the East Coast, Gulf Coast, Puerto Rico, Great Lakes, and major U.S. rivers. The U.S. East Coast and Gulf Coast ports handle billions of dollars in trade monthly and about 43 percent of all U.S. imports, according to supply chain and logistics company ITS Logistics.

Desmond continued: “Based on reports, a strike of any length of time is projected to cost at least a billion dollars a day and will have devastating consequences on the U.S. economy, consumer product companies, and American consumers. According to A.P. Moller-Maersk, a member of USMX, a one-week strike could lead to recovery and clearing the backlog by mid-November. A two-week strike might result in recovery extending into 2025, with longer strikes causing even more severe disruptions.”

The Toy Association continues to work with other organizations and associations whose members will be impacted should a strike occur. The Association previously signed a coalition letter to President Biden urging administration involvement in the negotiations to mitigate potential disruptions. Toy Association staff also participated in a coalition call last week regarding the status of the negotiations.

If a strike occurs and leads to significant economic disruption, the Biden Administration may invoke the Taft-Hartley Act, which provides additional mechanisms for mediating labor disputes that affect commerce. The Act was last invoked by President Bush in 2002 during negotiations between West Coast shipping companies and the International Longshore and Warehouse Union, in response to an employer lockout.

The Toy Association continues to remain active in coalition activities and stay engaged with the situation to keep members updated as negotiations continue.