[ad_1]
FOX Business’ Gerri Willis says it’s the ‘most wonderful time of year’ at stores nationwide on ‘Varney & Co.’
Retailers are poised to face challenges during the most critical time of year from potential port strikes on the East Coast and Gulf of Mexico if a new labor contract isn’t negotiated by the end of the month. But the largest retail trade group in the U.S. also warned that it could have a “devastating impact” on the overall economy.
Retailers are in the midst of preparing for the holiday season – the most critical three-month period of the fiscal year. It’s the biggest sales quarter of the year and, for some businesses, it accounts for more than half their annual sales.
The International Longshoremen’s Association (ILA), which is negotiating on behalf of 45,000 dockworkers at three dozen U.S. ports from Maine to Texas that collectively handle about half of the country’s seaborne imports, has warned its members are prepared to stop work if they don’t have a new contract by the Oct. 1 deadline.
CHRISTMAS IN SEPTEMBER: HERE’S WHY RETAILERS ARE ALREADY PULLING OUT THE HOLIDAY-THEMED GOODS
“The global supply chain is a complex system and even a minor disruption would have a negative impact and cause delays at a critical time for both retailers and consumers,” Jonathan Gold, National Retail Federation (NRF) vice president of supply chain and customs policy, told FOX Business.
He said many retailers are already working to “mitigate the potential impact of a strike by bringing in products earlier or shifting products to the West Coast.”
Stephen Schwartz, managing director of supply chain, trade and channel solutions at Wells Fargo, projected that while a short-duration strike would not significantly affect retailers and consumers during the holiday season, a prolonged strike could lead to more substantial impacts, including supply chain disruptions that consumers would begin to notice.
The NRF and a group of trade associations have written multiple letters to the Biden administration asking the president to ensure there is no disruption to the port operations because a “strike at this point in time would have a devastating impact on the economy, especially as inflation is on the downward trend.”
A container ship is docked at the Port of Miami on December 27, 2012 in Miami, Florida. (Photo by Joe Raedle/Getty Images / Getty Images)
“At this critical juncture, it is imperative that the parties return to the table without engaging in disruptive activities that could harm the economy and the millions of businesses, workers and consumers who rely on the seamless flow of goods, both imports and exports, through our East Coast and Gulf Coast ports,” the coalition of 177 trade associations wrote in a letter on Tuesday.
Two dockworkers talk next to stacked containers at the Port of Baltimore in Baltimore, Maryland, on Oct. 14, 2021. (Photo by JIM WATSON/AFP via Getty Images / Getty Images)
In June, the NRF and a coalition of 158 state and federal trade associations called for the administration to help the two parties return to the negotiating table after discussions had stalled.
MORE THAN A THIRD OF HOLIDAY SHOPPERS’ WILL SPEND LESS THIS YEAR THAN IN 2023
Presidents have the authority to intervene in labor disputes that pose a threat to national security or safety under a law known as the Taft-Hartley Act, which lets the president impose an 80-day cooling-off period under which workers go back to work while negotiations continue.
However, the Biden administration has signaled it doesn’t plan to use that authority if the longshoremen’s union goes on strike at East and Gulf Coast ports.
FOX Business reached out to Walmart, Target, Costco, Home Depot, Lowe’s and Walgreens for comment regarding the potential impact a strike could have on business.
FOX Business’ Eric Revell contributed to this report.
[ad_2]
Source link