The International Longshoremen’s Association (ILA) has officially ended its strike after reaching a tentative agreement with employers regarding wage increases.
The strike, which involved over 45,000 dockworkers across 36 ports along the East and Gulf coasts, came to a close following negotiations that resulted in a proposed 62% wage increase, according to reports from Fox Business.
ILA Local 1422 President Charles Brave confirmed the strike’s end to Live 5 News, and the union released a statement indicating that both sides had agreed to extend the current contract until January 15, 2025, to allow time for further negotiations on other unresolved issues.
#BREAKING: Local ILA 1422 President Charles Brave just confirmed the port strike is now over. They’ll be back to work tomorrow. @Live5News #charleston #portstrike2024 #portstrike2024
— Michal Higdon (@MichalHigdon) October 3, 2024
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In the meantime, all dockworkers will return to their jobs immediately, as agreed upon by the ILA and the U.S. Maritime Alliance (USMX), which represents the port employers.
The strike, which began on Tuesday, marked the first port strike in nearly 50 years. It raised significant concerns about disruptions to the U.S. supply chain, particularly as the holiday season approaches.
The affected ports handle a substantial portion of the nation’s imports, including essential goods like food, toys, seafood, and automobiles.
Economic analysts estimated that the strike could have cost the U.S. economy between $3.8 billion and $4.5 billion per day if it had continued, according to a JPMorgan analysis.
The strike centered on issues of wage increases and concerns about the growing use of automation at the ports.
Despite the disruptions, the striking workers received support from political figures across the spectrum, including Joe Biden, Kamala Harris, and former President Donald Trump.
“This strike is about fairness,” Harris said in a statement on Tuesday. “Foreign-owned shipping companies have made record profits, and executive compensation has grown. The Longshoremen, who play a vital role transporting essential goods across America, deserve a fair share of these record profits.”
Trump also weighed in, expressing his support for the workers. “American workers should be able to negotiate for better wages, especially since the shipping companies are mostly foreign flag vessels, including the largest consortium ONE,” he stated.
While the workers and many supporters praised the strike as a necessary action for fair compensation, others raised concerns about the broader economic impact.
Critics pointed to the potential for rising prices on goods such as bananas, chocolate, and alcohol, as well as the possibility of shortages in the aftermath of Hurricane Helene, which had already devastated parts of the Southeast.
The USMX had initially offered a 50% wage increase over the next six years, but the ILA held out for a more substantial offer, eventually securing the tentative 62% wage hike now under consideration.
The agreement is valid for the next 90 days, during which time both sides will continue negotiations on other outstanding issues.
If no final deal is reached by January 15, the proposed wage increase could be rescinded.
Despite mounting pressure to intervene in the labor dispute, Joe Biden declined to take action, stating over the weekend that he does not “believe in Taft-Hartley,” referring to the 1947 legislation that limits union power and allows the president to intervene in labor disputes if deemed necessary for national security.
As dockworkers return to work, the hope is that ongoing negotiations will lead to a final resolution before the January deadline, preventing further disruptions to the supply chain and ensuring that the workers receive what they consider to be fair compensation for their labor.
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