Secretary of Transportation Pete Buttigieg defended the International Longshoremen’s Association’s (ILA) pay demands Wednesday as the strike shutting down dozens of ports across the East and Gulf Coasts continues.
The ILA started their strike at midnight Tuesday after failing to agree on a new contract with the United States Maritime Alliance (USMX). Buttigieg argued that the companies that were part of USMX should be willing to part with some of their “unbelievable profits” to meet the demands of the ILA, which initially asked for a 77% pay raise over the six-year term of a new contract. (RELATED: Charles Payne Says Biden-Harris Admin Displayed ‘Massive Indifference To Americans’ By Not Halting Strike)
“The companies need to put forward an offer that’s going to get the workers to the table. And again, such an offering would be absolutely compatible with the companies remaining profitable. We’re talking about an industry that got unbelievable profits,” Buttigieg claimed during an appearance on “The Exchange.” “There was a single year where the shipping sector took $220 billion in profits around the world, and you’ve got these ocean carriers, foreign ownership, but we’ve been engaging them at the global level and at the North American level. They are certainly in a position to be able to include workers to participate in this profitability. They could end this tomorrow.”
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By comparison, since President Joe Biden and Vice President Kamala Harris took office in January 2021, prices have risen by over 20%, while the Consumer Price Index (CPI) reached a recent high of 9% year-over-year in June 2022.
Buttigieg claimed the companies were “padding” their profits, saying some of the companies planned to add surcharges in response to the strike.
“We see consumers feeling a crunch from this, and yet, we also see an unbelievable benefit to the bottom lines of the companies,” Buttigieg said. “We’re happy for the companies to do well, but they’re doing well either way. The point is for them to come to terms.”
“From what I can tell, the proposals from the East Coast dockworkers are really shooting to get their wage increases in the neighborhood of the ones that were reached by the West Coast dock workers,” Buttigieg added. “We saw them come to terms, they reached a deal that didn’t lead to a strike, that’s compatible with profitable shipping companies and workers getting what they deserve. These East Coast dockworkers who were there during COVID, many died on the job, they are asking to get their share as well.”
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