Tentative deal includes 62% wage increase over six years – sources Strike affected 36 ports and caused demurrage of ships at anchor Biden administration stands by unions and calls for strike resisted requests to stop
NEW YORK/WASHINGTON/LOS ANGELES – The International Longshoremen’s Association, the union representing U.S. longshoremen and port operators, has tentatively called off a three-day strike on wages that has halted shipping on the East Coast and Gulf Coast. An agreement was reached. said the U.S. Maritime Alliance.
The agreement extends the master agreement between the union and the port operator until January 15, 2025, allowing negotiations to continue on other aspects of the contract. A joint statement late Thursday did not specify agreed wages or other terms that would need to be negotiated.
“Effective immediately, all current work will cease and all work covered by the master contract will resume,” the statement said.
The tentative agreement would increase wages by about 62% over six years, the Bergen Record, part of the USA TODAY NETWORK, reported.
The union had asked for a 77% raise, but the employers’ association had raised the offer to nearly 50%.
The deal would prevent container ships from unloading from Maine to Texas, potentially causing shortages of everything from bananas to auto parts, and leaving ships stuck outside major ports. This will end the largest work stoppage of its kind in nearly half a century.
Biden, retail federations praise agreement
President Joe Biden praised the agreement in a statement released by the White House shortly after it was announced.
“I want to thank our union members, shipping companies, and port operators for their patriotic actions to reopen our ports and secure supplies needed for Hurricane Helen recovery and recovery,” Biden said. “Collective bargaining is working and essential to building a strong economy from the middle to the bottom up.”
The Biden administration is siding with unions and raising the amount it offers port employers to secure deals, citing the shipping industry’s huge profits since the coronavirus pandemic. I put pressure on him.
“By the grace of God…this will hold up,” Biden told reporters at Joint Base Andrews in Maryland after touring storm-ravaged states of Georgia and Florida.
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The administration has repeatedly resisted calls from industry groups and Republican lawmakers to use federal authority to end the strike ahead of the Nov. 5 presidential election. The move would undermine the union’s support for Democrats.
One such industry group echoed the president’s praise following the tentative agreement.
“The decision to end the current strike and allow ports on the East Coast and Gulf Coast to reopen is good news for the nation’s economy,” Matthew Shea, CEO of the National Retail Federation, said in a statement. said.
In a statement Monday, the federation called on the Biden administration to “utilize all available powers and tools” to end the strike.
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The effects of the strike began at the port. Agreement can avoid impact on consumers
By Wednesday, at least 45 container ships were stuck outside strike-hit East Coast and Gulf Coast ports, unable to unload their cargo, according to Everstream Analytics, compared to just a fraction of the number before the strike began. This is an increase from 3 ships.
Unions launched a strike by 45,000 longshoremen on Tuesday after negotiations for a new six-year contract collapsed, marking the first major work stoppage since 1977.
The strike affected 36 ports, including New York, Baltimore and Houston, which handle a variety of containerized cargo.
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Economists say the port closures will not initially cause consumer prices to rise as companies have accelerated shipments of key goods in recent months. But long-term closures will likely have an impact eventually, with food prices likely to be the first to react, Morgan Stanley economists said.
“After the first week, some impact is expected on fresh produce such as bananas, other fruits, seafood and coffee, which means fewer products reaching consumers and potentially higher prices. ,” said Tony Peri, Global Practice Director, Security & Resilience, BSI Americas. he told Reuters.
Contributors: James Powell and Francesca Chambers
(This article has been updated with new information.)
