The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) released a joint statement Thursday evening (link) announcing an end – at least temporarily – to the work stoppage that shut down the East and Gulf Coast ports earlier this week. ILA and USMX have agreed to extend the current Master Contract until Jan. 15, 2025, and to reopen all affected ports while negotiations continue on outstanding contract issues, including automation on the docks.
“Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” the parties said in the joint statement announcing the agreement.
The breakthrough, apparently brokered with the help of senior Biden administration officials, came after port employers offered a 62% increase in wages over six years, according to reports, less than the union demand for an increase of 77% over the term of the contract but a far larger increase than most major labor contracts. The latest offer would raise the base hourly rate for ILA port workers to $63 from $39 over six years, according to reports. The offer was reportedly made on the condition that dockworkers go back to work and agree to efficiency gains.
There will continue to be some disruption while a backlog is worked through. It had grown to 59 ships as of Thursday morning, according to data firm Everstream Analytics, and they were carrying hundreds of thousands of containers. Ports that closed their gates Monday night announced plans to reopen. Port Houston said it would open its gates at 1 p.m. Central time Friday and expected to begin handling vessels by 7 p.m.
President Joe Biden applauded the agreement, saying in a statement, “Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom says the end of the strike is terrific news for U.S. livestock producers and exporters who ship more than $100 million of U.S. pork and beef through those ports each week. USMEF said it is appreciative of the efforts of all of those involved, including the longshore union, container terminal operators and government officials, for bringing a quick resolution to the work stoppage.
The National Retail Federation (NRF) released the following statement from NRF President and CEO Matthew Shay: “The decision to end the current strike and allow the East and Gulf coast ports to reopen is good news for the nation’s economy. It is critically important that the International Longshoremen’s Association and United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families.” On Wednesday, NRF led a coalition of nearly 300 industry trade associations in sending a letter to President Biden calling on him to use “any and all authority” to end the strike.
This resolution provides stability for the shipping industry and related sectors in the short term, allowing for normal operations to resume while longer-term agreements are finalized.