Ports reopen as dock workers reach tenuous agreement, but strikes may resume

U.S. dock workers who began a strike at ports across the East Coast and Gulf Coast on Tuesday have reached a tentative agreement with the United States Maritime Alliance.
According to CNN, the terms of the deal between the alliance and the International Longshoremen’s Association, the union representing the workers, would provide a $4-an-hour wage increase each year for six years, resulting in a 62% total wage hike overall.
The agreement has led to the reopening of the closed ports, allowing container vessels to unload essential goods, ranging from produce to car parts.
Fears over the strike’s impact on the supply chain had prompted consumers to rush to stores, stocking up on essential items like toilet paper, in a manner reminiscent of the panic buying seen during the COVID-19 pandemic in 2020.
Negotiations for a new contract began due to the impending expiration of the unions current contract with USMX. The union had reportedly been seeking a $5-an-hour raise per year for six years, while the alliance initially offered a $3-an-hour increase.
After failing to reach an agreement, the union opted to strike.
The current deal has not yet been ratified, and the strike could resume if the deal is rejected. The union’s current contract has been extended to Jan. 15, 2025, in which time the union will decide whether to accept the new terms.
Another major issue in the negotiations involved protections for dock workers against job loss due to automation.
In a statement, President Joe Biden applauded both parties for reaching the tentative agreement.
“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding,” Biden said. “Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”
Ahead of the 2024 election, a prolonged strike could have negatively affected public opinion of the Biden administration due to potential economic fallout. On the other hand, intervening to halt the strike could have sparked tensions with unions.
JP Morgan analysts estimated that each day the ports remained closed would cost the U.S. economy approximately $5 billion, according to Reuters.
“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,” the National Retail Federation said in a statement.
“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 statement continued. “The sooner they reach a deal, the better for all American families.”