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    As Strike Looms, Port Operators Ask Regulator to Force Dockworkers to Negotiate

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    The group that represents port terminal operators said the International Longshoremen’s Association was refusing to negotiate a new contract before a Monday deadline.Days ahead of a possible strike by longshoremen on the East and Gulf Coasts, port employers said on Thursday that they were asking a federal labor regulator to force the dockworkers’ union to resume negotiating a new contract.The United States Maritime Alliance, which is made up of port terminal operators, said it had filed an “unfair labor practice” complaint at the National Labor Relations Board after, it said, the International Longshoremen’s Association repeatedly refused to negotiate. The alliance said it wanted the labor board to rule that the union must negotiate with the employers.In a statement on Thursday, Jim McNamara, an I.L.A. spokesman, called the charge a “publicity stunt” that illustrated that the port employers were “poor negotiating partners.”Last week, the union said the two sides had “communicated multiple times in recent weeks,” and it contended that a stalemate existed because the Maritime Alliance was offering “an unacceptable wage increase.”A strike could begin on Tuesday, after the current labor contract expires on Monday. The I.L.A. broke off talks in June, contending that it had discovered that an employer was using labor-saving technology at the port in Mobile, Ala., that it claimed was unauthorized under the current contract.A strike would close down nearly all activity at ports from Maine to Texas — including at the Port of New York and New Jersey, the third busiest in the country. Analysts say even a short walkout could deal a blow to the economy. Fearing a strike, importers have been bringing in goods before next week and diverting some shipments to West Coast ports.Officials in the Biden administration have said President Biden is not planning to force dockworkers back to work, which the 1947 Taft-Hartley Act authorizes him to do. But economists said Mr. Biden might well end up invoking the act if a strike dragged on.Under the expiring contract, longshoremen earn $39 an hour. A person familiar with the negotiations said the union was asking for a $5-an-hour raise in each year of the new contract, which would last for six years. The person said employers were offering annual raises of $2.50 an hour.The Maritime Alliance said Monday that it had been contacted by the Federal Mediation and Conciliation Service, a government agency that helps management and unions negotiate labor contracts.Federal labor law says it is unlawful for a labor organization to refuse to negotiate on behalf of its members. More

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    An East Coast Port Strike Could Shake the Economy

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    Businesses are preparing for a strike by dockworkers on the East and Gulf Coasts, which could begin Oct. 1 if negotiations don’t yield a new contract.With dockworkers on the East and Gulf Coasts threatening to strike on Oct. 1, businesses have been accelerating imports, redirecting cargo and pleading with the Biden administration to prevent a walkout.Some importers started ordering Christmas goods four months earlier than usual to get them through the ports before a labor contract between the operators of port terminals and the International Longshoremen’s Association expires next Monday.Many shipments have been diverted to West Coast ports, where dockworkers belong to a different union that agreed a new contract last year. The ports of Long Beach and Los Angeles say they are handling at least as many containers as they did during the pandemic shipping boom of 2021-22.Despite those measures — and all the problem-solving skills that supply chain managers developed during the turbulence of recent years — a short strike could lead to significant disruptions. JPMorgan transportation analysts estimate that a strike could cost the economy $5 billion a day, or about 6 percent of gross domestic product, expressed daily. For each day the ports are shut down, the analysts said, it would take roughly six days to clear the backlog.Chris Butler, the chief executive of the National Tree Company, which sells artificial Christmas trees and other decorations, said his company had brought in goods early and made greater use of West Coast ports. But he estimated that 15 percent of his goods would still be stranded by a port strike.“I’m very unhappy,” said Mr. Butler, who is based in northern New Jersey. “We’re doing everything we can to mitigate it. But there’s only so much you can do when you’re at the mercy of these ports.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Boeing Says It Has Made Its ‘Best and Final’ Offer to Striking Workers

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    The proposal includes raises of 30 percent over the four-year contract, up from a 25 percent offer, but it’s unclear whether it will satisfy workers.Boeing on Monday made what it described as its “best and final” contract offer to more than 33,000 striking union employees.The proposal offers benefits beyond those in a tentative contract that the employees, who are represented by the International Association of Machinists and Aerospace Workers, resoundingly rejected less than two weeks earlier. Boeing gave the workers, most of whom work in commercial aircraft production in the Seattle area, until the end of Friday to accept the offer.Boeing and the union restarted negotiations last week with the help of a federal mediator. The talks ended on Wednesday with no further negotiation dates scheduled, the union said at the time.Brian Bryant, the international president of the union, said in a statement on Monday that the organization was reviewing the offer.“Employees knew Boeing executives could do better, and this shows the workers were right all along,” he said. “The proposal will be analyzed to see if it’s up to the task of helping workers gain adequate ground on prior sacrifices.”The new proposal includes raises of 30 percent over the four-year term of the contract, up from the previous 25 percent offer. Boeing said it would give each worker $6,000 for approving the deal, double a previous offer. It would also reinstate performance bonuses that were set to be cut and increase a company match for employee 401(k) contributions. The rest is the same as the previous offer.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    What’s Next for Rate Cuts? The Fed Is Watching Jobs and Prices.

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    A Federal Reserve official predicted quarter point rate cuts if data looked ‘fine’. But he also set out a scenario for a pause — or faster reductions.Having made their first interest rate cut in more than four years this week, Federal Reserve officials are keeping their options open as they try to figure out how rapidly to lower borrowing costs in the months ahead.Fed officials could lower interest rates in standard quarter-point increments if the data continue to look “fine,” Christopher J. Waller, a Fed governor, suggested in a CNBC interview on Friday. If inflation were to pick back up, Fed policymakers could hold rates steady.And if the job market cools more than expected or if inflation comes in weaker than expected, the Fed could reduce interest rates more rapidly.“If the data starts coming in soft and continues to come in soft,” Mr. Waller said in the interview, he would be willing “to be aggressive on rate cuts to get inflation closer to our target of 2 percent.”Central bankers appear to be poised to lower borrowing costs much more quickly than most economists had expected as recently as a month or two ago. That has left some questioning what prompted the Fed’s pivot toward a more proactive path. And the Fed’s decision to cut rates by a larger-than-usual half point this week has many investors wondering whether other large moves could be on the table.Mr. Waller’s remarks offer insight into the Fed’s thinking at a critical juncture. Policymakers are trying to bring interest rates — which they lifted rapidly starting in 2022 and have left at a high level since 2023 — back toward a more normal setting, at which the rates no longer weigh so heavily on the economy. But how rapidly to do that is a challenging question.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    After Fed Cuts Rates, Biden Will Claim Credit for Economy’s Strength

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    The president’s speech on Thursday won’t be a “victory lap,” officials said, but it will celebrate falling inflation and borrowing costs along with solid growth.President Biden is set to declare on Thursday that the economy has finally reached a turning point he has long sought. With price growth cooling and borrowing costs beginning to fall, he will cast the economic moment as vindication for his often-criticized management of the recovery from the pandemic recession.But Mr. Biden will stop short of “declaring victory” over inflation in his speech to the Economic Club of Washington, administration officials said.Instead, the president will stress the need for further action to bring down the costs of housing, groceries and other daily necessities that continue to frustrate American consumers. That is a nod to the politics of price growth, which are challenging for Vice President Kamala Harris as she seeks to succeed Mr. Biden in the November presidential election.“The president knows this is no time for a victory lap, which is why he will talk about the work ahead,” Jeffrey Zients, the White House chief of staff, told reporters on Wednesday.Still, Mr. Biden appears poised to more boldly claim credit for the economy’s performance than he has in recent months. The president and Ms. Harris have struggled to shake off voter discontent over an inflation surge earlier in his presidency that has left many Americans with a lingering case of sticker shock.In recent weeks, the president has been buoyed by a run of good news on prices, including for gasoline, groceries and the overall inflation rate, as well as the first report of rising real incomes for the typical American since the pandemic began. Mortgage rates have fallen from their recent highs, and on Wednesday, the Federal Reserve cut interest rates by half a percentage point and signaled further cuts this year.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Boeing to Begin Temporary Layoffs Due to Strike

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    The aerospace giant said it would temporarily lay off tens of thousands of employees to stem losses from a walkout by the machinists’ union.Boeing will start furloughing tens of thousands of employees in the coming days as it seeks to blunt the effects of a strike involving its largest union, the company said on Wednesday.The strike, which began on Friday, has drastically slowed production of commercial airplanes because most of the union’s more than 33,000 members work in manufacturing in the Seattle area. Boeing announced a series of cost-cutting measures this week to stem losses that could reach into the billions of dollars in a prolonged strike.“With production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” the company’s chief executive, Kelly Ortberg, said in a message to employees on Wednesday.Mr. Ortberg joined Boeing last month, part of a management shuffle after a panel blew off one of the company’s planes in flight this year, leading to a crisis for the company. In response, federal regulators limited Boeing’s plane production and the company initiated a series of changes aimed at improving quality and safety.Managers planned to meet with workers on Wednesday to review how the temporary furloughs, which Mr. Ortberg said would affect “a large number of U.S.-based executives, managers and employees,” would play out. He also said that he and other company leaders would take a pay cut for the rest of the strike, though he did not say by how much.Employees will continue to receive benefits. And, for some, the temporary furloughs will be cycled in, with workers taking one week off every four weeks, on a rolling basis. It was not immediately clear which workers would be affected by the furloughs. Engineers, who are represented by a chapter of the Society of Professional Engineering Employees in Aerospace, are still required to work during the strike.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    In Nevada, Economy Tops Issues as Unemployment Remains High

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    The state is among a handful that will decide the presidential contest, and workers have felt increased prices at the grocery store and gas station.Sold-out shows along the Strip. Crews constructing a course for a major Formula 1 race. A record number of passengers at Harry Reid International Airport.For much of the past year, Las Vegas, the anchor of Nevada’s economy, has watched in delight as visitors have flocked to town for conventions, football games and summer pool parties, further solidifying its rebound from the doldrums after the pandemic shutdowns.But statewide, the economy is still burdened by high unemployment and higher costs of living — twin pocketbook struggles that animate voters here in one of a handful of states expected to decide the November presidential election.And about a quarter of Nevada voters in a New York Times/Siena College poll last month named the economy as their top issue. It was cited nearly twice as often as any other concern, comparable to findings in other swing states.A topic with particular resonance among Nevada workers — eliminating federal taxation on tips — burst into the national discourse after former President Donald J. Trump told a crowd in Las Vegas that he intended to do away with the practice if elected. He was inspired, Mr. Trump has said, by a conversation with a waitress in the city.His opponent, Vice President Kamala Harris, later endorsed the idea during a campaign stop in Las Vegas, but paired the proposal with a promise to raise the federal minimum wage.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 163 Shares169 Views

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    As Federal Reserve Readies Interest Rate Cut, Risks to Job Market Still Loom

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    The Federal Reserve is poised to lower interest rates this week. Recent jobs data have been a reminder that a soft landing is not yet assured.An object in motion stays in motion. Is a labor market trend that’s well underway any different?That’s the question looming for officials at the Federal Reserve as they try to pull off a feat that has never really been accomplished before: gently cooling an economy that was experiencing rip-roaring inflation without tanking the job market in the process.So far, the Fed’s attempt at a soft landing has worked out better than just about anyone, including central bankers themselves, expected. Inflation has cooled significantly, with the Consumer Price Index down to 2.5 percent from a peak of 9.1 percent just two years ago. And even with the Fed’s policy interest rate at its highest level in more than two decades, consumer spending has held up and overall growth has continued to chug along.Fed officials are eager to keep it going. That is why all signals suggest that they will lower interest rates at the conclusion of their meeting on Wednesday — and the only real question is whether they will cut them by a typical quarter of a percentage point or by a half percentage point. They are also likely to forecast that they will lower interest rates further before the end of the year, perhaps predicting that they will cut them by a full point from their current 5.33 percent.But even as the Fed turns an important corner on its fight against inflation, real risks remain. And those center on the labor market.Unemployment has been slowly, but steadily, rising. Wage growth has been consistently slowing. Job openings have come down, and hiring rates have come down along with them. And while all of those developments are what the Fed wanted — the point of this exercise was to slow an overheated job market and prevent it from fueling future inflation — central bankers have been clear that they do not want to see it continue.“We do not seek or welcome further cooling in labor market conditions,” Jerome H. Powell, the Fed chair, said in his latest speech.Unemployment and Underemployment RiseThe jobless rate historically jumps during recessions.

    Notes: Unemployment is the share of people actively looking for work; underemployment also includes people who are no longer actively looking and those who work part time but would prefer full-time jobs. Seasonally adjusted.Source: Bureau of Labor StatisticsBy The New York TimesWage Growth Is Cooling SteadilyAfter spiking in 2022, wage gains for rank-and-file workers have been coming down.

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    Year-over-year change in average hourly earnings
    Note: Data is for production and nonsupervisory employees and is not seasonally adjusted.Source: Bureau of Labor StatisticsBy The New York TimesJob Openings Fall, Just as More People Look for ThemAfter years in which jobs were much more plentiful than available workers, that ratio is on the cusp of flipping.

    Data are seasonally adjusted.Source: The Bureau of Labor StatistticsBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More