U.S. port workers’ strike ends with union acquiring 62 percent wage increase

A three-day strike of port workers in on the U.S. East Coast and Gulf Coast has ended with the union and the United States Maritime Alliance reaching a deal late Thursday.

The tentative deal, as reported by Reuters, means the strike immediately ended. Port workers who went on strike in Portland and Seattle will receive a wage hike of approximately 62 percent in the next six years. The International Longshoremen’s Association sought a 77 percent raise, while the employer’s offer was nearly a 50 percent increase.

Yesterday’s agreement ends the biggest labor strike in the United States in nearly 50 years. The unloading of container ships from Maine to Texas has halted and supplies of everything from bananas to auto parts were threatened. A backlog of ships anchored in major ports resulted in the strike.

ILA and USMX will extend their master contract to Jan. 15, 2025 and return to negotiations on all issues of concern.

“Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” a statement to Reuters said.

By Wednesday, ILA’s strike of 45,000 port workers left 45 container vessels anchored in 36 East Coast and Gulf Coast ports, including New York, Baltimore and Houston.

At first, President Joe Biden’s administration said government intervention would not happen under the Taft Hartley Act, but the administration did express siding with the union. The administration reminded USMX of profits made since the COVID-19 pandemic.

Morgan Stanley economists insisted the strike would not affect consumer prices because shipping by companies had been accelerated in recent months, but a prolonged labor strike would eventually lead to an effect on food prices.

“After the first week, we can expect some impact on perishable products like bananas, other fruits, seafood, and coffee, meaning fewer goods are reaching consumers, potentially driving up prices,” said Tony Pelli, global practice director for security & resilience at BSI Americas.

The strike’s end assuages consumer concerns of supply chain problems, which began during and after the COVID-19 pandemic, when supplies were strained and food prices increased.

Related stories:

‘ILA workers over machines’: Port employees strike over pay and automation (augustafreepress.com)