The short-lived strike by dockworkers that shut down East Coast ports came to an end late Thursday when the International Longshoremen’s Association and the United States Maritime Alliance announced they had come to a tentative agreement on wages and an extension of the master contract.
The first ILA strike in five decades saw 45,000 union employees walk off the job and bring container and ro-ro handling to a halt at 36 ports across 14 major marine hubs from New England to Texas.
Rumors of a settlement swirled Thursday, just days after President Joe Biden scolded employers for not bargaining in good faith and urged a resumption to negotiations. The settlement clears a potential major issue for Democrats with the general election just weeks away, without Biden having to invoke the Taft-Hartley Act forcing the union back to work while negotiations resumed.
The new deal, which sources close to the talks said came together quickly, provides a pay raise of 61%, or $4 per hour over the six years of the pact, and extends the master contract to Jan. 15, 2025, to allow the sides to negotiate outstanding issues.
In a joint statement, the sides said all current job actions will cease immediately and all work covered under the master contract will resume although the timeline for that was not specified.
“I want to applaud the International Longshoremen’s Association and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports,” Biden said in a statement released by the White House. “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract. I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic. And I applaud the port operators and carriers who are members of the U.S. Maritime Alliance for working hard and putting a strong offer on the table.
“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding. Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”
The substantial wage increase by employers came as something of a surprise. The ILA had been firm about seeking a wage hike of $5 per hour while terminal operators and shipping lines were offering around $3. The USMX on Wednesday said they were open to negotiating but wouldn’t do it under ILA pre-conditions.
The tentative agreement was reached as the number of vessels waiting outside ports continued to increase and major retailers were forced to wait for their imports amid fears of shortages of medicines, fresh fruits, and other vital goods. Exporters including manufacturers and agri-businesses were also caught in a squeeze waiting for ports to reopen. Container lines were prepping surcharges to account for extended voyages if a longer strike forced them to divert ships to West Coast ports.
Businesses were quick to react to news of the agreement.
“The decision to end the current strike and allow the East and Gulf Coast ports to reopen is good news for the nation’s economy,” said Matthew Shay, president and chief executive of the National Retail Federation. “It is critically important that the International Longshoremen’s Association and United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families.”
The NRF on Wednesday led a coalition of trade organizations urging Biden to intervene in the strike and re-start contract negotiations.
Find more articles by Stuart Chirls here.
Related coverage:
Union chief says he has received death threats during dock strike
Biden scolds ocean carriers for not paying dockworkers ‘fair’ wages
What shippers need to know about the port strike and cargo insurance
