As UPS and the Teamsters inch closer to a deadline that could result in a massive strike, President Joe Biden may be forced into another politically tough call on whether to intervene.
UPS worker contracts are set to expire on July 31, and failure to reach an agreement could result in what would be the biggest worker strike for a single employer in U.S. history. If the worst occurs, Biden could decide to use federal law to intervene, although it would be a difficult choice for a man who has cast himself as the country’s most union-friendly president.
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The showdown between UPS and the Teamsters, who represent more than 340,000 workers, has been months in the making. The union voted by a 97% margin to go on strike should an agreement not be reached in time, although neither side is eager for such a seismic event to occur.
But if negotiations fail and there were a nationwide strike, Biden technically has the power to step in, according to Dan Bowling, a distinguished fellow at Duke University School of Law, where he teaches labor and employment courses.
Last year Biden was criticized by some pro-union figures for getting involved with a massive labor dispute involving rail workers. Biden prevented a strike by convening a Presidential Emergency Board under the Railway Labor Act of 1926, and ultimately Congress used its authority to impose an agreement between the two sides.
While Biden couldn’t use the Railway Labor Act to step in for this showdown, he could intercede under the National Labor Relations Act, which gives the president the authority to intervene without congressional approval in instances deemed a national emergency, Bowling told the Washington Examiner.
“This was first used during World War II when [President Franklin] Roosevelt halted a strike by aircraft workers building B-17s,” Bowling explained.
Bowling said in his opinion, stopping a UPS strike doesn’t meet muster to fall into the national emergency category, although he said the way the law was written gives Biden pretty broad authority. An intervention would force an 80-day cooling-off period.
Specifically, the president is empowered to act through the Taft-Hartley Act, which amended the Labor Relations Act to give the executive authority to intervene in instances that represent national emergencies.
The argument for invocation of the Taft-Hartley Act would be that allowing UPS, which carries some 6% of U.S. gross domestic product, to freeze up would be so detrimental to the macro U.S. economy that it would constitute an emergency. Undoubtedly business groups like the U.S. Chamber of Commerce would push for Biden to act should a strike occur.
If Biden didn’t intervene, Republicans could attack him as being weak in the face of economic threats. Biden’s economic approval ratings are already not doing well, and the GOP plans to emphasize the country’s inflationary woes on the campaign trail in 2024. Not intervening would give the president’s enemies more ammo in the lead-up to the elections.
But Biden also can’t afford to lose crucial blue-collar union support, especially in key swing states like Pennsylvania, Michigan, and Wisconsin, so the choice would be difficult for the administration.
Still, negotiations aren’t likely to fail to the point of a strike just given how damaging one would be to the company and, ultimately, the union members involved, Bowling contended.
Last week, UPS and the Teamsters negotiating team pointed the finger at one another for walking away from the negotiating table. The two sides have yet to return to talks, according to a statement provided to the Washington Examiner by UPS on Wednesday.
“The Teamsters have stopped negotiating despite historic proposals that build on our industry-leading pay. We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” the company said. “Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy.”
White House spokeswoman Karine Jean-Pierre recently told reporters that the Biden administration is monitoring the situation between the two parties and is hopeful that an agreement will be reached before the deadline at the end of the month.
“I don't have any information on increased administration involvement, but certainly we remain in contact with both parties,” she said.
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Likewise, acting Labor Secretary Julie Su told CNN last week the administration is closely watching the negotiations. She also acknowledged the major role that UPS plays in the domestic economy.
“I, like the president, believe in the collective bargaining process,” she said. “There’s a reason that the parties negotiate directly.”