US port strike ends as unions and employers reach tentative settlement agreement
1 month ago
US port strike ends as unions and employers reach tentative settlement agreement
The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) are poised to resume negotiations after reaching a tentative agreement on wages.
Key Highlights:
• The ILA and USMX have reached a preliminary agreement on wages, effectively ending a three-day strike at US East Coast ports.
• The existing labor contract has been extended until January 15, 2025, during which the unions and employers must address outstanding issues.
• Operations at US East and Gulf Coast ports are set to resume on Friday, October 4.
In a joint statement, the ILA and USMX announced, “The International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have reached a tentative agreement on wages and agreed to extend the Master Contract until January 15, 2025, to negotiate all other outstanding issues. Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume.”
ILA members had been on strike since Tuesday, disrupting operations along the US East and Gulf Coasts after the previous six-year master contract for dockworkers expired without a new agreement on September 30.
While specific details of the wage agreement were not disclosed, reports suggest a proposed increase in the range of 61% to 62% over the six years of the contract. Previously, the ILA had sought a 77% increase, while USMX had raised its offer to "nearly 50%" just before the strike began.
President Joe Biden expressed his support for the tentative agreement and the restoration of operations at the affected ports. "Today’s tentative agreement on record wages and the extension of the collective bargaining process marks significant progress toward a robust contract," he stated. “I congratulate the dockworkers from the ILA for their hard work during the pandemic and commend the port operators and carriers of the US Maritime Alliance for their strong offer."
Both parties now have until January 15, 2025, to finalize all outstanding issues and sign a new six-year master contract. A major point of contention remains terminal automation, which prompted the ILA to leave negotiations in June. The ILA is advocating for a halt to further automation and the preservation of dockworker jobs, while employers seek to maintain the current terms regarding automation.
Additionally, the unions are requesting that 100% of the Container Royalty funds be allocated as wage supplements to members, rather than shared with employers.
Cargo shippers are relieved, as a prolonged strike could have severely impacted already strained global supply chains. According to HSBC Global Research, the US East and Gulf Coasts accounted for 8% of global container volumes in 2023.
Although the strike lasted only three days, it will take time to return to normal operations, with a growing number of vessels waiting outside ports and a backlog of export cargo.
The Port of Virginia has stated it will resume full operations and is working to bring its terminals back online safely and efficiently. "We estimate that it will take 24 hours to fully restore operations, with many components being restarted simultaneously," the port said. The Port of New Orleans also announced its container terminal will reopen on Friday, October 4, with truck gates at New Orleans Terminal and Ports America opening at noon.
Cary S. Davis, President and CEO of the Association of American Port Authorities, commented, “As operations gradually return to normal, patience is essential. This situation reminds us that our system is resilient enough to withstand short-term disruptions. We are pleased that the strike has ended, and AAPA sincerely thanks USMX and ILA for their collaborative efforts in negotiating this agreement.”
Source: Sea Trade Maritime