A historic strike by the International Longshoremen’s Association (ILA) that had shut down major ports along the East and Gulf coasts has been suspended after a tentative wage agreement was reached with the U.S. Maritime Alliance (USMX). The deal, announced Thursday, includes a 62% wage increase over six years, which will bring the top hourly wage for dockworkers to $63 by the end of the contract, up from $39 under the expired agreement.
The strike, which began on Tuesday, marked the first coastwide walkout by the ILA in nearly 50 years. Tens of thousands of dockworkers had set up picket lines at key shipping ports, causing widespread disruptions to supply chains. Thousands of containers were left stranded, and goods ranging from fruits to automobiles were delayed.
The agreement came after pressure from the Biden administration, which had urged both sides to reach a deal to avoid further economic fallout. However, the President also indicated his full support for the ILA and their efforts. President Joe Biden applauded the resolution, stating that collective bargaining is essential for building a stronger economy and ensuring the continued flow of critical supplies, particularly in the aftermath of Hurricane Helene.
I applaud the International Longshoremen’s Association and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.
Collective bargaining works.
— President Biden (@POTUS) October 4, 2024
While the wage agreement marks a significant breakthrough, other key issues remain unresolved. The use of automated machinery at ports, which has been a point of contention, will continue to be negotiated through January 15, when the extended contract expires. Despite the ongoing disputes, both sides have expressed commitment to resolving the remaining issues.
The strike had sparked concerns over inflation and potential layoffs if the work stoppage had continued. Port employers initially offered a 50% wage increase, but the ILA pushed for more, leading to the final 62% compromise. Industry experts noted that while the wage hike is a victory for the union, it may lead to higher costs for importers and exporters.
Operations at the affected ports, including the Port of New York and New Jersey, are expected to resume immediately, with workers returning under the terms of the extended contract.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.