Some 45,000 dockworkers at East and Gulf coast ports are returning to work after their union reached a deal to suspend a strike that could have caused shortages and higher prices if it had dragged on. The International Longshoremen’s Association is suspending its three-day strike until Jan. 15 to provide time to negotiate a new contract. The union and the U.S. Maritime Alliance, which represents ports and shipping companies, said in a joint statement that they have reached a tentative agreement on wages.
A person briefed on the agreement said the ports sweetened their wage offer from about 50% over six years to 62%. Any wage increase would have to be approved by union members as part of the ratification of a final contract. Talks now turn to the automation of ports, which the unions say will lead to fewer jobs, and other sticking points.
Industry analysts have said that for every day of a port strike it takes four to six days to recover. But they said a short strike of a few days probably wouldn’t gum up the supply chain too badly. The settlement pushes the strike and any potential shortages past the November presidential election, eliminating a potential liability for Vice President Kamala Harris, the Democratic nominee. It’s also a big plus for the Biden-Harris administration, which has billed itself as the most union-friendly in American history.
The union went on strike early Tuesday after its contract expired in a dispute over pay and the automation of tasks at 36 ports stretching from Maine to Texas. The strike came at the peak of the holiday season at the ports, which handle about half the cargo from ships coming into and out of the United States. Most retailers had stocked up or shipped items early in anticipation of the strike.
President Joe Biden expressed relief after the agreement, stating, “With the grace of God, and the goodwill of neighbors, it’s gonna hold.” Biden applauded both sides “for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.”
The union's membership won't need to vote on the temporary suspension of the strike. Until Jan. 15, the workers will be covered under the old contract, which expired on Sept. 30. The union had been demanding a 77% raise over six years, plus a complete ban on the use of automation at the ports, which members see as a threat to their jobs.
Thomas Kohler, who teaches labor and employment law at Boston College, said the agreement to halt the strike means that the two sides are close to a final deal. Kohler mentioned that the surprise end to the strike may catch railroads off guard, but they are likely to work quickly to fix any issues.
Thursday's deal came after Biden administration officials met with foreign-owned shipping companies before dawn on Zoom, emphasizing the responsibility to reopen the ports to help with recovery from Hurricane Helene. Acting Labor Secretary Julie Su and Chief of Staff Jeff Zients played key roles in facilitating the agreement.
