On Thursday Oct. 3, the International Longshoremen’s Assn. (ILA) agreed to suspend the strike after receiving an improved wage offer from employers, according to reports. U.S. Maritime Alliance (USMX) offered to increase wages by 62% over the course of a 6-year contract, the New York Times Reports. According to a joint statement, ILA and the USMX have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume.
The ILA, which represents unionized workers at ports on the U.S East and Gulf coasts are on strike for the first time in 47 years. ILA’s contract with USMX, which represents 40 ocean carriers and terminal operators, expired on Oct. 1 at midnight.
In June, the union canceled bargaining over what it claimed was an unfair use of technology that bypassed union labor. The sides haven’t met since, according to FreightWaves, a price reporting agency focused on the global freight market.
Dock workers on the East Coast, Gulf Coast and Puerto Rico handle 43% of U.S. imports, and the strike would reportedly disrupt billions of dollars in trade. According to FreightWaves, ILA is looking for a 77% pay increase, and Harold Daggett, union president, reportedly has rejected a 40% increase. According to to the Wall Street Journal, "dockworkers typically earn a six figure annual salary because of work rules and overtime requirements.In the financial year of 2020, more than half of the 3,726 dockworkers at the Port of New Jersey earned more than $150,000, according to a report by the port's regulator." About 20% of dockworkers earned over $250,000 that year, WSJ reports.
The strike will impact major ports in New Jersey, Virginia, Savannah, Ga., and Houston during one of the busiest times of year, reports the WSJ.
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