A tentative agreement has been reached between the two sides after a strike at the US East terminal ended
The International Longshoremen's Association (ILA) and the United States Maritime Alliance Limited (USMX) issued a joint statement announcing that the parties had reached an agreement on wages and extended the main contract until January 15, 2025 to return to the negotiating table on all other outstanding issues. The statement also noted that with immediate effect, all strike action will cease and work covered by the main contract will resume immediately.
According to people familiar with the matter, the preliminary agreement would see dockworkers' wages rise by about 62 per cent over the next six years from current levels, indicating a compromise between the two sides on wage increases. In previous negotiations, the International Longshoremen's Union had demanded a 77 percent increase, while the Maritime Union had insisted on a nearly 50 percent increase.
The differences between the two sides on the issue of loading and unloading automation still need to be resolved by further negotiations. Harold Daggett, president of the International Longshoremen's Federation of America, previously identified operators such as Maersk Line and its North American Terminals Company as not agreeing to halt port automation projects.
This swift resolution helped ease concerns about potential supply chain disruptions and economic impact. It is estimated that the economic impact of the strike could reach billions of dollars per day. President Biden commended the two sides for reaching an agreement to reopen the port, noting that this preliminary agreement represents a critical step toward a strong contract.
According to several media reports, the White House is deeply involved in strike negotiations. The Biden administration has sided with the unions, repeatedly refusing to use federal power to end the strike, as business trade groups and Republican lawmakers have demanded. With the U.S. presidential election scheduled for November 5, the Biden administration is worried that calling off the strike could undermine the support of labor unions for the Democratic Party.
The Biden administration has long argued that collective bargaining is the best way to resolve the dispute and has urged port employers to improve their offers to reach an agreement. The government is sticking to this position despite mounting pressure to use presidential powers to end the strike.
According to the Wall Street Journal, the two sides agreed to a 62 percent raise over the course of the six-year contract, while the union had been demanding a 77 percent raise. On the eve of the strike, the two companies had offered pay rises of nearly 50 per cent. In addition, the parties have decided to extend the current contract until January 15, 2025, and return to the negotiating table to negotiate all other outstanding issues, including the union's demand for a ban on the use of all automation equipment in the port.
According to Reuters, citing the United States "Yongcurrent analysis" company data reported that as of 16:00 Eastern time on the 3rd, at least 54 container ships were stranded outside the strike port in three days. Some shippers have been forced to reschedule voyages and plan to raise container rates. After news of the port strike spread, the United States repeated the "toilet paper rush" scene during the COVID-19 pandemic, CNN reported on Tuesday.
The White House is under pressure from House Republicans and hundreds of industry groups to intervene in the strike. The groups have warned of widespread damage to supply chains and the broader economy if the strike continues. However, President Biden has repeatedly expressed support for the collective bargaining process and has refused to invoke the Taft-Hartley Act to force an end to the strike.
The Associated Press reported that the strike and potential supply shortages were delayed until after the November election, helping the Biden administration to promote its image as "the most union-friendly administration in U.S. history" and helping Democratic presidential candidate and Vice President Kamala Harris.
According to people familiar with the matter, the preliminary agreement would see dockworkers' wages rise by about 62 per cent over the next six years from current levels, indicating a compromise between the two sides on wage increases. In previous negotiations, the International Longshoremen's Union had demanded a 77 percent increase, while the Maritime Union had insisted on a nearly 50 percent increase.
The differences between the two sides on the issue of loading and unloading automation still need to be resolved by further negotiations. Harold Daggett, president of the International Longshoremen's Federation of America, previously identified operators such as Maersk Line and its North American Terminals Company as not agreeing to halt port automation projects.
This swift resolution helped ease concerns about potential supply chain disruptions and economic impact. It is estimated that the economic impact of the strike could reach billions of dollars per day. President Biden commended the two sides for reaching an agreement to reopen the port, noting that this preliminary agreement represents a critical step toward a strong contract.
According to several media reports, the White House is deeply involved in strike negotiations. The Biden administration has sided with the unions, repeatedly refusing to use federal power to end the strike, as business trade groups and Republican lawmakers have demanded. With the U.S. presidential election scheduled for November 5, the Biden administration is worried that calling off the strike could undermine the support of labor unions for the Democratic Party.
The Biden administration has long argued that collective bargaining is the best way to resolve the dispute and has urged port employers to improve their offers to reach an agreement. The government is sticking to this position despite mounting pressure to use presidential powers to end the strike.
According to the Wall Street Journal, the two sides agreed to a 62 percent raise over the course of the six-year contract, while the union had been demanding a 77 percent raise. On the eve of the strike, the two companies had offered pay rises of nearly 50 per cent. In addition, the parties have decided to extend the current contract until January 15, 2025, and return to the negotiating table to negotiate all other outstanding issues, including the union's demand for a ban on the use of all automation equipment in the port.
According to Reuters, citing the United States "Yongcurrent analysis" company data reported that as of 16:00 Eastern time on the 3rd, at least 54 container ships were stranded outside the strike port in three days. Some shippers have been forced to reschedule voyages and plan to raise container rates. After news of the port strike spread, the United States repeated the "toilet paper rush" scene during the COVID-19 pandemic, CNN reported on Tuesday.
The White House is under pressure from House Republicans and hundreds of industry groups to intervene in the strike. The groups have warned of widespread damage to supply chains and the broader economy if the strike continues. However, President Biden has repeatedly expressed support for the collective bargaining process and has refused to invoke the Taft-Hartley Act to force an end to the strike.
The Associated Press reported that the strike and potential supply shortages were delayed until after the November election, helping the Biden administration to promote its image as "the most union-friendly administration in U.S. history" and helping Democratic presidential candidate and Vice President Kamala Harris.
