Update: On Oct. 4, dockworkers reached a tentative agreement and will extend their existing contract until Jan. 15. “We hope the port operators and longshore workers are able to reach an agreement beyond January that will keep supply chains stable and certain for the long term.” — Eric Dell | president and CEO | American Bakers Association
WASHINGTON, DC — As the International Longshoremen’s Association’s port strike along the East and Gulf Coasts enters its third day, the American Bakers Association (ABA) expressed its concern over the impact a prolonged work stoppage could have on the commercial baking industry. The strike, which comprises 45,000 workers, has shut down all container ports on the two coasts.
ABA joined 296 other business-oriented groups to send a letter to President Joe Biden urging the administration to use its authorities to end the strike immediately. The letter iterates the dire situation and negative ramifications for various industries and the economy.
“It is more critical than ever for President Biden to intervene and invoke the Taft-Hartley Act, which would compel ports to resume essential operations while negotiations between port operators and longshore workers continue,” said Eric Dell, president and CEO of ABA. “Each day that container ports on the East and Gulf coasts remain closed costs the US economy billions of dollars, with severe repercussions for the commercial baking sector and American consumers.”
According to the National Association of Manufacturers, $2.1 billion in daily trade is at risk, with potential economic losses estimated to reduce the gross domestic product (GDP) by as much as $5 billion per day. A recent Oxford Economics report suggests the strike could slow US GDP growth by $4.5 billion to $7.5 billion per week if it continues. Additionally, if the strike continues for an extended period of time, it could affect up to 105,000 jobs.
