Members of the International Longshoremen’s Association who had been on strike will be returning to work at the ports on Friday after reaching a tentative deal on wages. The agreement includes a $4-per-hour raise for each year of the six-year contract, amounting to a 62% increase in wages over the life of the contract. The union has extended its contract with the United States Maritime Alliance until January 15 to finalize the details of the agreement and have it ratified by the rank-and-file members.
President Joe Biden praised the tentative wage deal, acknowledging the sacrifices made by the dockworkers during the pandemic. The strike had disrupted the flow of containerized imports and exports, impacting American businesses overseas. With the union members returning to work, the ports will resume operations, but the deal still needs to be ratified by the rank-and-file members.
Despite the tentative agreement, there is a possibility that the members may reject it, leading to another strike. The rejection of a labor deal is not unprecedented, as seen in the case of the International Association of Machinists and Boeing last month. The ongoing port strike had the potential to significantly impact the US economy, with disruptions in the supply chain threatening shortages and price increases.
Business groups had urged the Biden administration to intervene and order the strikers back to work, but Biden chose not to interfere with the collective bargaining process. The shipping industry had seen record profits during and after the pandemic, with industry profits topping $400 billion from 2020-2023. The USMX had offered nearly a 50% raise over the six-year contract, while the union had been demanding a higher raise, leading to negotiations and ultimately the tentative agreement on wages.
The union had initially considered a $4-an-hour wage increase as recommended by the Biden administration but had reverted to their demand of $5 an hour when faced with a $3 raise proposal from USMX. The ongoing negotiations and agreement on wages mark a significant development in the labor dispute at the ports. The story continues to develop, with updates and additional context being provided by CNN.
