The International Longshoremen’s Union and the United States Maritime Alliance have reached a tentative agreement that has suspended the strike at East and Gulf Coast Ports and should ensure continued movement of cargo through the holidays and potentially beyond.
The two parties have agreed on a wage hike, although the issue of automation on the docks is still subject to negotiations. In addition to missed fees and wages suffered by the two sides, the ILA and USMX came under pressure, including a plea to the Biden Administration for strike intervention in a letter signed by the International Housewares Association, the International Housewares Shippers Association and some 300 other trade groups.
In a joint statement, ILA and USMX wrote:
The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the master contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease, and all work covered by the master contract will resume.
Although the statement did not cover the wage hike, published reports maintained that it would be 62% over six years.
Another letter signatory, the National Retail Federation, pointed out that the end of the strike was a positive development for the U.S. economy.
“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. 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,” NRF president and CEO Matthew Shay noted after news broke on the tentative agreement.
News of the strike’s suspension came as the U.S. Bureau of Labor Statistics released a stronger-than-expected jobs report indicating that nonfarm payroll employment increased by 254,000 in September and that the unemployment rate remained unchanged at 4.1%.
