Port strike ends with tentative agreement
Fresh produce importers can breathe a little easier now that the three-day dockworker strike that shut down more than 30 East Coast and Gulf Coast ports has come to a close. Last night dockworkers and port operators reached a tentative deal resulting in the immediate cessation of the work stoppage. Workers will operate under the established contract until Jan. 15.
Prior to the strike crews had been working double time and overtime to unload ships and clear the docks of containers; however, there are currently at least 45 container vessels that have been unable and are anchored outside the strike-hit ports, according to Reuters.
In a joint statement, the two sides said, "The International Longshoremen’s Association and the United States Maritime Alliance Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until Jan. 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."
A June 2023 dockworker strike affecting West Coast ports lasted about two weeks and produced a six-year contract. ILA was looking for a similar contract for East Coast dockworkers, whose pay scale lags far behind their West Coast counterparts. The existing union rate for the East Coast and Gulf Coast ports is currently about 30 percent below what the ILA negotiated in their June 2023 contract for West Coast dockworkers.
The tentative deal has been reported to be an increase in wages of around 62 percent over six years — ultimately up to about $63 an hour from $39. The ILA had been asking for a six-year deal with a 77 percent increase in wages; USMX's previous offer was a 50 percent increase.
“The retail industry is relieved to see positive progress in the ILA and USMX contract negotiations that ensures the vital East and Gulf Coast ports are open and fully operational," Retail Industry Leaders Association said in a statement. "Without the specter of disruption looming, the U.S. economy can continue on its path for growth and retailers can focus on delivering for consumers."