After the Biden administration and transportation stakeholders worked tirelessly to clear freight bottlenecks left in the wake of the COVID-19 pandemic, a series of labor disputes now threaten to throw the supply chain back into chaos. Reports last week of a tentative agreement on the West Coast between longshoremen and port operators were welcome news, but it is too early to take a victory lap, as it will be months before we learn if the union’s rank and file will approve the deal.
As seen during recent rail negotiations, tentative deals get rejected. If that were to happen here with the ports, the supply chain will again be at grave risk. Any congressional resolution here would be significantly more difficult because, unlike the rail situation, ports are not covered by the Railway Labor Act, so Congress would have to craft a legislative solution from scratch.
Even if the tentative port deal is ratified, ongoing contract negotiations between the International Brotherhood of Teamsters and some of the largest motor carriers in our supply chain remain unresolved. Failure to responsibly negotiate these pending contracts in the trucking industry would damage the economy and risk serious harm to the American consumer. Virtually every good we use and rely on in daily life touches the back of a truck.
If labor disruptions persist, or a strike or lockout occurs, many of those goods will not reach stores or our homes. Americans will experience product shortages and price spikes as bad or worse than those endured at the height of the pandemic. Businesses that rely on just-in-time delivery will suffer, as will their employees. Layoffs will follow.
The economy depends on certainty, and only one person can provide that in this critical moment: The president of the United States. Using his clout with union leaders, President Biden must ensure negotiations proceed responsibly and without harm to the nation. He demonstrated this kind of leadership during the rail talks by keeping the parties at the bargaining table without either side engaging in disruptive actions until the process resulted in a final deal to keep commerce flowing.
The reason these contract renewals are now stacking up is precisely because of a lack of leadership, which President Biden must reject. Enough with the inflammatory tweets, name-calling, and finger-pointing. If certain parties continue down this path of destruction rather than come to the table and negotiate in good faith, then it is incumbent on the Biden administration to use all tools at its disposal to mediate a resolution.
A good start would be inviting the parties pending trucking negotiations to an open and frank discussion hosted by a mutually agreed-upon mediator. This should not be delegated to a secretary of Labor nominee who for months has failed to win over members of the president’s own party. The stakes are simply too high for these contract talks to become a sideshow to a slow-moving confirmation battle. The president alone commands the immediate respect that can ensure the sober and serious engagement that is required of all parties. He can urge compromise and push for a fair and speedy conclusion.
The president also has powers beyond his “bully pulpit” to protect the American people. If parties do not live up to their responsibilities, he can invoke the Taft-Hartley Act to enjoin a threatened or actual strike or lockout that imperils national health or safety or affects a substantial part of any industry engaged in trade, commerce and transportation.
The American Trucking Associations respects the collective bargaining process and legal rights of both parties — employers and unions. We also understand the gravity of what happens if any or all these contracts fail to be renewed and a strike or lockout occurs. The pandemic taught us how seemingly isolated supply chain snarls can reverberate fast and far throughout the broader economy and across the globe, hitting American families and small businesses the hardest.
It takes courage to lead a country and resolve major differences fairly. We elect one person to do just that, and we need his leadership now. It’s time for President Biden to answer the call using all the powers of his office.
Chris Spear is president and CEO of American Trucking Associations.