A U.S. port strike that halted shipping on the East Coast and Gulf Coast for three days ended on Thursday after longshoremen reached a tentative agreement with port operators.
The International Longshoremen’s Association (ILA) announced it has reached an agreement with the United States Maritime Union (USMX) on wages and suspended its strike until January. The union said work would resume immediately.
The strike, which involved 45,000 workers at 36 ports from Texas to Maine, was the first to hit ports on the U.S. East Coast and Gulf Coast since 1977.
Sources told Reuters that the tentative agreement would result in a pay increase of about 62%. Both sides said in a statement that they would return to the negotiating table to negotiate all outstanding issues.
Concerns were growing about the potential economic impact of the strike and the threat of shortages. JPMorgan analysts estimate that the strike could cost the U.S. economy up to $5 billion a day.
After it became clear the strike was over, Joe Biden told reporters: “By the grace of God and the goodwill of our neighbors, the strike will continue.”
“Today’s tentative agreement on record wages and an extension of the collective bargaining process marks important progress toward a strong contract,” the president said in a statement. “I want to thank the union officials, carriers, and port operators who acted patriotically to reopen our ports and secure supplies needed for Hurricane Helen recovery and rebuilding.
“Collective bargaining is working and essential to building a stronger economy from the middle to the bottom up.”
Kamala Harris also praised the agreement and echoed Biden’s sentiments about the power of collective bargaining.
“Like I said, this is about equity, and our economy works best when workers share in record profits. They deserve a fair share for their hard work bringing essential goods to the United States,” Harris said in a statement.
Negotiations between ILA and USMX broke down in June after the union accused USMX of violating its contract by introducing automation at some ports.
Both sides have accused the other of refusing to negotiate, with the ILA demanding significant wage increases commensurate with the profits the industry has made in recent years.
Among the outstanding issues remaining in the contract, which is expected to be negotiated before extending the current contract until Jan. 15, is the union’s push for improved protections against automation at ports. Unions oppose the introduction of automation, which will lead to job losses.
The start of the strike just before the election brought the political views of key figures under scrutiny. ILA Chairman Harold Daggett faces questions over his relationship with Donald Trump, while the Guardian exposes social media posts by USMX Chairman and CEO David Adam that are harshly critical of the Democratic Party did.
