WEBVTT - US Transportation Secretary Pete Buttigieg Talks Port Strike Threat

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. The Secretary of Transportation,

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<v Speaker 1>Pete Bodhaje Edge in the wake of the devastation that

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<v Speaker 1>we've seen left by Hurricane Helene, Mister Secretary, welcome back

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<v Speaker 1>to Bloomberg TV and Radio. There are a number of

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<v Speaker 1>things we'd love to ask you about, beginning with this.

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<v Speaker 1>People who are living in the most impacted areas right

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<v Speaker 1>now feel like they're living on another planet. I spoke

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<v Speaker 1>with a friend of mine in Asheville, North Carolina, earlier

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<v Speaker 1>today on an old fashioned phone. By the way, Prema said,

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<v Speaker 1>we have no water, no power, no Wi Fi. We're

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<v Speaker 1>bathing in the creek, boiling water to drink. There's supposed

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<v Speaker 1>to be food and water tents, but we can't access

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<v Speaker 1>info on where they're located. And she says the roads

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<v Speaker 1>are filled with trees and power lines, so we can't

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<v Speaker 1>get there anyway. We'd love for you to give us

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<v Speaker 1>a real time update, if you would, on what's happening

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<v Speaker 1>on the ground here and when people like Premo will

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<v Speaker 1>get some information on how they can help themselves.

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<v Speaker 2>So yeah, the situation, especially in parts of North Carolina,

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<v Speaker 2>but really across a number of states is absolutely shocking,

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<v Speaker 2>and of course the best information for anyone directly impacted

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<v Speaker 2>is going to come from local responders, local authorities. But

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<v Speaker 2>what I can say from the transportation perspective on the

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<v Speaker 2>federal side is that we have been engaged with the

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<v Speaker 2>state leadership, with our folks on the ground really from

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<v Speaker 2>the early phases of this to make sure that we

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<v Speaker 2>can target resources to help restore that normalcy. You mentioned

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<v Speaker 2>a number of roads. We're finding reports of hundreds of

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<v Speaker 2>roads that have been compromised, affected by landslides, mudslides, flooding,

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<v Speaker 2>as well as the number of bridges that have either

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<v Speaker 2>been compromised or need to be inspected for twenty six

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<v Speaker 2>including in key parts of North Carolina and Tennessee impacted,

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<v Speaker 2>and it's going to be a while before that sense

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<v Speaker 2>of normalcy returns. But who's our working very quickly to

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<v Speaker 2>assess the damage and to clear away obstruction. We're able

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<v Speaker 2>to provide funding to help make sure that that is

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<v Speaker 2>never an obstacle to quick action, something that unfortunately is

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<v Speaker 2>a tool we've had to use many times, most notably

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<v Speaker 2>recently with the ship strike in Baltimore. But I've reached

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<v Speaker 2>out to the governors of six impacted states, and our

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<v Speaker 2>in state personnel have been working to help make sure

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<v Speaker 2>that those assessments take place. The first priority, of course,

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<v Speaker 2>is safety, making sure that a bridge is in fact

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<v Speaker 2>safe before it's cleared for traffic to travel on it,

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<v Speaker 2>making sure that those roads aren't compromised as well. But

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<v Speaker 2>first and foremost, our hearts go out to everybody who's

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<v Speaker 2>been impacted, and President Biden has asked every part of

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<v Speaker 2>this administration to be there for as long as it takes,

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<v Speaker 2>and that's exactly what we're doing.

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<v Speaker 3>Well, how long, mister Secretary, do you expect it will take?

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<v Speaker 3>You mentioned it could be quite a while until there's

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<v Speaker 3>a return to normalcy in these areas. When it comes

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<v Speaker 3>to actual transit infrastructure, what timeline do you think is realistic?

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<v Speaker 3>And frankly what costs?

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<v Speaker 2>Well, the timeline will be dictated by safety, and that's

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<v Speaker 2>part of what the hundreds of inspections that are already

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<v Speaker 2>getting underway are going to tell us. When is it

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<v Speaker 2>a case of simply being able to certify that, for example,

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<v Speaker 2>a rural bridge is good to go. When is it

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<v Speaker 2>in a condition that means there's going to need to

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<v Speaker 2>be a limit on the loads that can go on

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<v Speaker 2>that bridge till it can be reinforced. When do you

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<v Speaker 2>have a situation where a bridge may look okay, but

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<v Speaker 2>actually it has been undermined by the floodwaters and has

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<v Speaker 2>to be closed completely. We can't say in advance what

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<v Speaker 2>those inspections are going to reveal safety wise, but what

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<v Speaker 2>we can say is we're going to make sure that

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<v Speaker 2>the availability of federal dollars is not an obstacle to

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<v Speaker 2>quick action. I expect the price tag will be enormous,

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<v Speaker 2>certainly in terms of a natural disaster, outpaces anything so

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<v Speaker 2>far mathematically that I've seen in terms of highway funding

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<v Speaker 2>requests likely to come in. Now, we do have an

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<v Speaker 2>emergency relief fund for this purpose. It will be able

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<v Speaker 2>to respond to the immediate needs. But I don't see

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<v Speaker 2>how we get the funding that's going to be needed

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<v Speaker 2>overall without turning to Congress. I know even now they

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<v Speaker 2>are biparties and conversations beginning about how to put that request. Together.

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<v Speaker 1>Well, i'd like to ask you about that, mister Secretary,

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<v Speaker 1>among some of the other topics we'd like to get into.

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<v Speaker 1>Is it time to call lawmakers back? Do you think

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<v Speaker 1>that that's something that we will see between now and

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<v Speaker 1>the election. Otherwise the people impacted by this storm could

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<v Speaker 1>be waiting quite a long time.

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<v Speaker 2>Well, again, we do have billions of dollars available in

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<v Speaker 2>the Emergency Relief Fund, So just strictly speaking for the

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<v Speaker 2>US DOT, we're not looking at a run on the

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<v Speaker 2>bank in the next few days or weeks. But we

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<v Speaker 2>do face a bigger structural issue if Congress doesn't replenish

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<v Speaker 2>that fund to be able to keep up with demands. Now,

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<v Speaker 2>we have an authority called quick Release that means that

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<v Speaker 2>we can get a very quick turn on some of

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<v Speaker 2>these dollars. But at the end of the day, when

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<v Speaker 2>you talk about the level of destruction that we are

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<v Speaker 2>witnessing that some communities are still assessing the level of damage,

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<v Speaker 2>I just don't see how it's going to happen without

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<v Speaker 2>a lot of concerted bipartisan action across the country and

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<v Speaker 2>from across the aisle.

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<v Speaker 3>Well, and that's one of the reasons why this timing

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<v Speaker 3>is so difficult, not only because Congress is not in session,

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<v Speaker 3>but also because, Sir, of something that could happen in

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<v Speaker 3>a minute past midnight, just hours from now, forty five

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<v Speaker 3>thousand dock workers on ports along the East Coast and

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<v Speaker 3>Gulf are set to go on strike unless some last

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<v Speaker 3>minute agreement could be reached. These are ports that handle

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<v Speaker 3>imports of goods that may be needed in some of

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<v Speaker 3>these areas affected by Hurricane Helene. Is that factoring into

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<v Speaker 3>the conversations at all from your understanding and frankly, what

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<v Speaker 3>can be done to secure those supply chains. If this

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<v Speaker 3>strike does indeed.

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<v Speaker 2>Happen, it's certainly something that adds to what is already

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<v Speaker 2>the major importance of America's ports, and it's why we

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<v Speaker 2>have been engaging the parties really for months as it's

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<v Speaker 2>been known that this deadline was approached, because it will

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<v Speaker 2>take the parties coming to terms that means, the ocean carriers,

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<v Speaker 2>in the ports and the dock workers in order to

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<v Speaker 2>prevent a strike like that. Now, if you think about

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<v Speaker 2>the timelines of ocean shipping, obviously they're very different from

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<v Speaker 2>the timelines associated with something like air freight, and the

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<v Speaker 2>stocks that you expect to see aren't to kind of

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<v Speaker 2>a day by day thing, But it doesn't take long

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<v Speaker 2>before you would really feel the impacts of that. Now,

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<v Speaker 2>we've established tools here at the Department of Transportation to

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<v Speaker 2>help manage some of the very different supply chain issues

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<v Speaker 2>that we've seen starting with COVID than what happened on

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<v Speaker 2>the Red Sea, issues with water levels in the Mississippi River,

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<v Speaker 2>in the Panama Canal, and now the potential for labor

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<v Speaker 2>action and the impact that that would have. It means

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<v Speaker 2>we've got a dialogue with a number of logistics and

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<v Speaker 2>shipping players who weren't all talking to us or to

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<v Speaker 2>each other before we built up some of these relationships

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<v Speaker 2>and some of these tools. Apartment just today had another

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<v Speaker 2>convening that my colleagues at dot brought together with about

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<v Speaker 2>sixty different players across logistics and supply chains to make

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<v Speaker 2>sure that we're mapping everything in anything that needs to

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<v Speaker 2>happen in terms of adjustments or flexibilities across road, rail

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<v Speaker 2>and different ports across the United States. But certainly the

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<v Speaker 2>best thing that could happen is for the parties to

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<v Speaker 2>quickly come to terms to do that before midnight and

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<v Speaker 2>for there would be no work stoppage.

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<v Speaker 1>Well, yeah, we're talking about basically half the imports coming

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<v Speaker 1>into the United States that these East Coast and Gulf

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<v Speaker 1>Coast ports are receiving. Mister Secretary, This really speaks to

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<v Speaker 1>the focus of your job right now, could you be

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<v Speaker 1>more specific about the contingency plans that you're making to

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<v Speaker 1>avoid another snarling of our supply lines and avoid another

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<v Speaker 1>inflationary experience that we all remember from our ports.

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<v Speaker 2>Well. Again, we've been using tools that we've built up,

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<v Speaker 2>a new multi mode Little Freight Office created by the

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<v Speaker 2>Infrastructure Investment and Jobs Act, Regular Convenence, a new tool

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<v Speaker 2>that we established called Flow, which helps to map the

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<v Speaker 2>longer forecast for what's happening with ups and downs of

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<v Speaker 2>container shipping, engaging with the beneficial cargo owners, the shippers,

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<v Speaker 2>the store chains and others that actually have the goods

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<v Speaker 2>coming across on those containers and understanding better the positioning

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<v Speaker 2>that they've had. Now, there was some activity over the

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<v Speaker 2>spring and the summer with the anticipation of the possibility

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<v Speaker 2>of an issue on the East coast, which led some

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<v Speaker 2>cargo to be directed to the West coast instead, But

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<v Speaker 2>there's really no substitute for the ports being up and running.

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<v Speaker 2>That's why the ports are where they are. And again

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<v Speaker 2>the most important thing is going to be for the carriers,

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<v Speaker 2>the shippers and the workers to come to terms so

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<v Speaker 2>that everybody can be working and goods can move smoothly.

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<v Speaker 3>Well, mister Secretary, this is just one example of what

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<v Speaker 3>seems to be broaderly strife in transportation. We've seen it

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<v Speaker 3>in just the last few years with rail We've seen

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<v Speaker 3>it with cars. Now we're seeing it obviously at the ports.

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<v Speaker 3>We're seeing it too with planemakers. Is the stripe is

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<v Speaker 3>still ongoing of the Boeing machinist now entering it's third week.

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<v Speaker 3>What exactly do you see happening here thematically and couldn't

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<v Speaker 3>reshape American transportation moving forward?

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<v Speaker 2>Yeah, we've definitely seen a bigger, broader pattern in recent years.

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<v Speaker 2>It's been characterized by these businesses in those sectors doing

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<v Speaker 2>very well, a lot of profitability, certainly when you talk

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<v Speaker 2>about shipping or when you talk about railroading, and workers

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<v Speaker 2>insisting on participating in those earnings, and frankly having a

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<v Speaker 2>president who supports the idea that these contracts should arrive

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<v Speaker 2>on terms that are working for business, but also that

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<v Speaker 2>are working for workers and allowing them a chance to

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<v Speaker 2>participate in these sometimes record breaking profits. That's what you saw,

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<v Speaker 2>for example recently with a historic deal that was reached

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<v Speaker 2>with American Airlines and their flight attendants. We've seen a

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<v Speaker 2>major raise going to rail workers, and also an issue

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<v Speaker 2>that was not resolved at the time of the threats

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<v Speaker 2>of a strike with rail workers a couple of years ago.

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<v Speaker 2>At the time, only about five percent of them had

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<v Speaker 2>access to sick leave. Right now, that's about a ninety percent,

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<v Speaker 2>and we were pushing for the railroad companies that can

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<v Speaker 2>get that last ten percent done to get together with

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<v Speaker 2>their unions and make that happen. But there's no question

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<v Speaker 2>that you see a period where workers are seeking to

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<v Speaker 2>participate in the economic growth that's happening. You could obviously

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<v Speaker 2>say the same in terms of the historic deal that

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<v Speaker 2>was reached with auto workers. And look, when you have

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<v Speaker 2>historic profits and you look at ocean shipping, it became

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<v Speaker 2>an unbelievably profitable industry over recent years. Then of course

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<v Speaker 2>you're going to see workers seeking to participate in that

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<v Speaker 2>to make sure that they're getting a share of that.

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<v Speaker 2>The whole idea of collective bargaining is to reach an

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<v Speaker 2>agreement on something that is consistent with the business thriving

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<v Speaker 2>and empower the workers to thrive. We've seen that happen

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<v Speaker 2>in time and time again as the result of collective bargaining,

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<v Speaker 2>and it's what the President hopes and expects to see

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<v Speaker 2>here as well.

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<v Speaker 1>Well, you must, mister Secretary, you must feel like you're

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<v Speaker 1>running the labor department over the course of this conversation today.

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<v Speaker 1>So I guess i'd have to ask you ahead of

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<v Speaker 1>tomorrow night's vice presidential debate in our remaining moment. I

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<v Speaker 1>know this is something that you've been involved in here,

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<v Speaker 1>what is the message when it comes to labor that

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<v Speaker 1>will win swing state votes?

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<v Speaker 2>Well, you know, in this capacity, I can't speak about

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<v Speaker 2>the campaign and election side of things, but what I

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<v Speaker 2>will say is that you do have an administration that

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<v Speaker 2>is proudly pro worker. The President prides himself on being

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<v Speaker 2>the most historically pro labor president in modern times. And again,

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<v Speaker 2>you know, he's also demonstrated, given the record profitability and

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<v Speaker 2>economic growth that we've seen, that being pro worker can

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<v Speaker 2>be consistent with business thriving too. Certainly, you're right have

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<v Speaker 2>been involved in a lot of labor matters, but I

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<v Speaker 2>don't want to take any credit from our Acting Secretary

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<v Speaker 2>of Labor, Julie Sue, who's been doing an enormous amount

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<v Speaker 2>of work, both in this particular case, engaging the different

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<v Speaker 2>parties to help them make progress at the table when

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<v Speaker 2>it comes to the dock workers, and generally just doing

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<v Speaker 2>a fantastic job helping to make sure that we have

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<v Speaker 2>economic growth and worker empowerment at the same time.

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<v Speaker 3>All Right, mister Secretary, thank you very much for your

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<v Speaker 3>time this evening on what I'm sure has been a

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<v Speaker 3>busy several days. That's Transportation Secretary Pete buddhaj Edge