Despite ongoing negotiations between the union and shipping companies, Bank of America has predicted that the current port strike is likely to last no more than a few weeks. The bank's analysts anticipate that President Joe Biden may intervene and bring an end to the strike by invoking the Taft-Hartley Act.
Bank of America's analysts have outlined their base case scenario, suggesting that the port strike will likely be resolved within a few days or weeks once the Taft-Hartley Act is invoked to reopen the ports. They emphasize the delicate balance that President Biden faces in supporting the workers' negotiations while also considering the potential disruptions to supply chains and the economy caused by prolonged port strikes.
However, the Biden administration has not shown a strong inclination towards invoking the Taft-Hartley Act at this point. President Biden has expressed his reservations, stating, 'I don't believe in Taft-Hartley.'
Despite the possibility of intervention, workers retain the ability to significantly slow down operations at the ports, even if they are officially back at work. This lingering threat of reduced productivity could further complicate efforts to fully resolve the situation.
