The strike by 50,000 port workers has come to an end with a new deal that covers wages, but not other contract provisions. The International Longshoremen’s Association members will receive an immediate raise of $4 an hour, amounting to a 10% increase, with an additional $4-an-hour raise annually over the six-year contract. This resulted in a cumulative raise of $24 and a 62% increase in pay. The deal fell short of the 77% increase the ILA initially asked for but was above the earlier offers from management.
ILA President Harold Daggett emerged as a national figure and star in labor and shipping circles during the strike. Despite controversy surrounding his hefty salary and past allegations of mob ties, Daggett successfully negotiated for the union members. The strike highlighted the profitability of foreign-owned shipping lines during the pandemic and drew attention to the union’s demands. Keeping all locals unified throughout negotiations gave the ILA significant leverage in the process.
The end of the strike is a win for businesses and consumers as goods will start flowing again without any significant shortages. The National Retail Federation welcomed the reopening of East and Gulf Coast ports, emphasizing the importance of reaching a final agreement that benefits American families. Avoiding prolonged strike-induced shortages will likely prevent price increases for various products and a disruption in the economy similar to the congestion at West Coast ports seen in 2021.
President Joe Biden and his administration opted not to intervene using the Taft-Hartley Act to end the strike, instead choosing to support a fair deal rewarding union members for their work. Although the strike itself was not viewed as a win for the administration, avoiding a major economic disruption and ensuring a deal that kept all parties satisfied was a significant achievement. Acting Labor Secretary Julie Su played a crucial role in bringing about the wage deal that ended the strike.
While the shipping lines did not get the deal they wanted, the quick resolution to the strike benefits an industry that is currently profitable. The Biden administration’s reluctance to interfere in the negotiations may have put more pressure on the United States Maritime Alliance than the ILA. The threat of antitrust action may have influenced the USMX to settle for a deal that was acceptable to the union, ensuring the uninterrupted flow of goods through the ports. Despite not getting everything they desired, the shipping lines came out relatively unscathed due to the timely resolution of the strike.
