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The American economy is appealing to the crisis-ridden White House under Biden to prevent the strike at the East Coast docks

The American economy is appealing to the crisis-ridden White House under Biden to prevent the strike at the East Coast docks

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Cargo containers are stacked at the Port of New York and New Jersey in Elizabeth, New Jersey, Thursday, May 20, 2021. (AP Photo/Seth Wenig)

About 150 industry associations, including the U.S. Chamber of Commerce, sent an open letter to the Biden administration last Tuesday calling on it to prevent a strike at East Coast docks, where the contract for more than 40,000 workers expires at the end of September.

There is enormous resistance among dockworkers to the onerous working conditions. In addition to labor barriers and safety issues, they also face the threat of their jobs being lost to automation. As in virtually every industry, ports are trying to maximize profits and eliminate thousands of jobs through new advances in artificial intelligence and automation. Weaponizing labor-saving technologies that could and should reduce workloads and improve workers’ quality of life and living standards is instead being used to accelerate a jobs massacre that has already cost around a million jobs in U.S. companies since the beginning of last year.

Fearing a labor rebellion, the International Longshoremen’s Association (ILA) threatened to strike if a new collective agreement was not reached by September 30. On June 10, the ILA canceled further talks with the US Maritime Alliance (USMX) after it was revealed that APM Terminals and Maersk were using automated systems to handle trucks.

The business groups’ letter called on the Biden White House to “work immediately with both parties to resume contract negotiations and ensure there are no disruptions to port operations and cargo handling.”

The letter expresses this in terms of “national security” and goes on to say:

One of the government’s key priorities has been supply chain resilience and addressing ongoing supply chain challenges. We continue to see challenges in the maritime supply chain due to ongoing attacks by the Houthis on vessels transiting the Red Sea. This has led to further supply chain issues: congestion and lack of equipment at overseas ports, capacity issues with carriers as they continue to withdraw vessels from the Red Sea, and increased freight rates.

With all these existing challenges, the last thing the supply chain needs is a strike or other disruption due to ongoing collective bargaining. As this Government has seen, even the threat of a strike or disruption can have a negative impact on the supply chain.

The letter ends with a call for an agreement that “ensures continued global competitiveness and that of supply chain participants” – or in plain language: an agreement that guarantees continued profits for US corporations.

Biden’s program of corporatism

Regardless of the letter, there is no doubt that Biden is already deeply involved in the talks – as he has been in all contract negotiations with industries that are considered critical to supply chains from the perspective of corporate interests and the national security apparatus.