WASHINGTON, Sept 25 (Reuters) - Agriculture groups on
Wednesday urged the White House to act to avert a potential
strike that could begin on Oct. 1 at U.S. East and Gulf Coast
ports that handle roughly half of the country's ocean imports.
Dozens of groups including the American Farm Bureau
Federation, Renewable Fuels Association and American Chemistry
Council said "the time has come for the U.S. government to
intervene and ensure port operations do not stop" in order to
prevent damage to U.S. agriculture and the economy.
Republican Senator Ted Cruz raised concerns about the impact
of a work stoppage, saying the U.S. "teeters on the brink of the
first union strike among East and Gulf Coast ports since 1977."
He cited a JPMorgan ( JPM ) analysis that projected a port strike could
cost the U.S. economy $5 billion daily.
Negotiations between the International Longshoremen's
Association union and the United States Maritime Alliance (USMX)
employer group appear to be deadlocked over pay as the Sept. 30
contract expiration approaches.
The White House did not immediately comment on the letter.
"We are monitoring and assessing potential ways to
address impacts to U.S. supply chains related to operations at
our ports, if necessary," White House spokesperson Robyn
Patterson said Tuesday, adding officials encourage continued
negotiations "toward an agreement that benefits all sides and
prevents any disruption."
President Joe Biden's administration has said the
president does not intend to invoke a federal law known as the
Taft-Hartley Act to
prevent a strike.
A threatened strike by 45,000 ILA-represented workers at
three dozen affected ports, including New York and New Jersey,
Houston and Savannah, Georgia, would
send delays and costs cascading
through U.S. supply chains.
Approximately 40% of U.S. containerized agricultural
exports move through East and Gulf Coast ports, the agriculture
groups said.