American workers have agreed to end a three-day strike that has halted shipping on the eastern and Gulf coasts, after reaching a six-year pay contract with the United States Maritime Alliance (USMX).
The strike, which began on October 1, stopped the flow of containers at 36 ports from Maine to Texas, affecting major hubs such as New York, Baltimore, and Houston.
Members of the International Longshoremen’s Association (ILA), which represents 45,000 workers, walked out for the first time since 1977. The economic cost of the strike is estimated at $5 billion a day by JP Morgan analysts. The workers returned to their positions after USMX agreed to a 62% wage increase over six years. The agreement represents a significant improvement over the employers’ previous proposal of a 50% increase.
Despite this decision, the dock workers have suspended their strike until January. The union said it will return to the forum to discuss other issues, particularly automation, which the ILA fears will lead to job losses.
President Joe Biden welcomed the agreement, emphasizing the importance of maritime workers to the nation’s economy. “Today’s tentative agreement on record wages and an extension of the collective bargaining process represents significant progress toward a strong contract,” Biden said. Vice President Kamala Harris also praised the agreement, reiterating the power of collective bargaining and the importance of fair wages for key workers.
The strike began amid frustration over automation projects at some ports, which the ILA says threatens employment. ILA President Harold Daggett, a staunch critic of the changes, warned shipping lines that workers are essential. “We’re going to show these greedy bastards that you can’t live without us,” he said as he started walking.
The strike has exacerbated resource shortages, particularly in southern states that have been hit hard by Hurricane Helene. Shipping lines and ship operators were under pressure to resolve disagreements to ensure that critical cargo reached the affected areas. At noon on the third day, the shipping companies agreed to an improved wage proposal, paving the way for a formal agreement.
The ILA’s success in securing a significant wage increase has drawn attention, with many booth workers now earning six figures. More than half of New York-New Jersey port workers reportedly earn more than $150,000 a year, with some earning more than $250,000. ILA president Daggett earned more than $900,000 last year and is known for living a lavish lifestyle, including owning a Bentley and a 76-foot yacht.
Although the pay agreement averted an immediate crisis, talks on the future of automation at the ports are expected to be contentious as the union seeks to protect jobs amid changing industrial processes.
