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International Longshore Association suspends port strike until January

International Longshore Association suspends port strike until January
International Longshore Association suspends port strike until January

 


The union that represents tens of thousands of port workers across the United States has agreed to suspend its strike while negotiations continue.

Members of the International Longshore Association (ILA) walked out Tuesday at 14 major ports along the Eastern and Gulf coasts, halting container traffic from Maine to Texas.

The union says it has reached a tentative agreement on wages and will return to work Friday until Jan. 15, when it will return to the bargaining table to negotiate “all other outstanding issues.”

The action marked the first such closure in nearly 50 years and threatened to wreak havoc amid the busy holiday shopping season and the upcoming presidential election.

“Effective immediately, all ongoing actions will cease and all work covered by the framework contract will resume,” said a joint statement from the ILA and the employers group – United States Maritime Alliance (USMX).

Under the agreement in principle, salaries would increase by 62% over the next six years, according to BBC News.

But negotiations will continue on a number of outstanding issues, including automation.

The union had called for a 77% wage increase, while the USMX had previously increased its wage increase offer to almost 50%.

The BBC has contacted the ILA and USMX for comment.

The short ILA strike…will surely rank among the three most lucrative days in labor-management history,” said Patrick L Anderson, CEO of business consultancy Anderson Economic Group.

“ILA workers apparently won a 60% pay increase after giving up 3 days of work in a strike that did no serious damage to the U.S. economy.”

German shipping group Hapag-Lloyd told Reuters on Friday it could take three to four weeks to catch up with the backlog of ships linked to strikes at US ports.

The strike began on Tuesday after negotiations over a new six-year contract failed.

The walkout was the ILA's first major shutdown since 1977.

The affected ports included some of the nation's busiest ports, including New York, Georgia and Texas. Experts estimate they account for more than a third of U.S. imports and exports.

US President Joe Biden welcomed the tentative agreement in a statement late Thursday, saying it “represents crucial progress toward a strong contract.”

“I commend ILA dockworkers, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic,” Biden said.

“And I applaud the port operators and carriers who are members of the American Maritime Alliance for working hard and putting a strong offer on the table.”

Biden stressed the need to open ports to “ensure the availability of critical supplies” for those affected by Hurricane Helene, which left more than 200 dead in the southeastern United States.

News of the suspension of the work stoppage was also welcomed by business owners.

The decision to end the current strike and allow East Coast and Gulf ports to reopen is good news for the nation's economy,” said Matthew Shay, president and CEO of the National Retail Federation , in a press release.

Businesses were preparing for the possibility of a prolonged shutdown, which would threaten to disrupt global trade and the U.S. economy.

Some companies had restocked their stocks as strike warnings circulated over the summer.

Many consumers were also scared and stocked up on certain products, such as baby formula and toilet paper.

Under the 2018 contract that expired Monday, dockworkers earned a base hourly wage of between $20 and $39, as well as other benefits, including fees tied to container traffic.

Harold Daggett, director of the ILA, demanded that companies agree to increase hourly wages by $5 for each contract year.

The union, which has about 47,000 active members according to federal records, also seeks protection against automation.

Sources

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2/ https://www.bbc.com/news/articles/cn8jxnn76qwo

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