Strike action at 14 ports on the US east and Gulf coast has ended, after a temporary new wage agreement was reached. The union representing the U.S. dockworkers agreed to suspend the strike while further negotiations continue.
After the initial short-lived strike concluded, a temporary agreement on wages was put in place. This agreement will last until Jan. 15, when the parties will need to return to the bargaining table on other issues under the threat of another strike.
This strike was the first shutdown of its kind in almost 50 years, according to BBC. The economy lost up to $5 billion every day due to the impending strike with the International Longshoremen’s Association (ILA) on the Gulf and east coasts against their employer for more equal wages.
ILA President Harold Daggett announced “We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” in a statement posted on the organization’s Facebook page, noting the end of the strike on Oct 3.
Because ports are essential hubs for global trade, the strike does affect 36 U.S. ports over a vast geographic area, from Maine to Texas, with both immediate and long-term impacts.
Even the most prepared logistics teams have to keep using a strategic and quick approach as the crisis develops, even though shippers who frequently utilize east and Gulf coast ports had been preparing for the possible strike.
Some ports are dedicated to handling products for a specific industry, but any port can handle any kind of goods. New Orleans, which handles coffee, mostly from South America and Southeast Asia, various chemicals from Mexico and North Europe, and wood products from Asia and South America. Or Philadelphia, which prioritizes fruits and vegetables.
Baltimore and Brunswick, Ga., the two busiest auto ports, were among the ports impacted by the shutdown. Other ports affected include: Boston, New York, Virginia, North Carolina, South Carolina, Georgia, Florida.
President Biden responded “no” when asked if he intended to step in during the ongoing conversations. However at the conclusion of the strike Biden applauded the tentative agreement saying it “represents critical progress toward 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,” Biden said.
According to individuals who were aware of the agreement but were not permitted to discuss it publicly, the two parties have agreed to a 62% pay raise spread over six years. Over the course of six years, the union had been requesting a 77% rise. The employers had promised rises of about fifty percent the day before the strike started.
The parties have decided to extend the current agreement through Jan. 15, 2025. Any other unresolved matters, including the union’s demand that any automation at the ports be prohibited, will be discussed when they get back to the negotiating table.