US port union agrees to temporarily suspend strike
ECONOMY & POLICY

US port union agrees to temporarily suspend strike

The International Longshoremen's Association agreed to suspend a strike that had shut down major ports along the East and Gulf coasts. This decision came after port employers made an improved wage offer.

The strike, which had been initiated by the dockworkers union, posed a potential economic challenge just five weeks before national elections. Employers, represented by the US Maritime Alliance, proposed a 62 per cent wage increase over the duration of a new six-year contract, according to a source familiar with the negotiations. This proposed increase, while less than what the union initially demanded, was significantly higher than the alliance's earlier offer.

In a statement, the union mentioned that they had reached a "tentative agreement on wages" and announced that their 45,000 members would return to work, with the current contract extended until January 15. The union also noted that negotiations on other unresolved issues would continue. The alliance released a similar statement.

The agreement was reached following pressure from the White House, which had urged both parties to settle the dispute and end the strike—the union's first major walkout since 1977. The wage increase was seen as a significant victory for the ILA and its president, Harold J Daggett, a 78-year-old third-generation dockworker who has been leading the union since 2011.

When asked about the tentative agreement at Joint Base Andrews on Thursday evening, President Joe Biden commented that the administration had been working diligently on the issue and expressed hope that the deal would hold.

A 62% wage increase would bring the top longshoremen’s wage to just over $63 per hour by the end of the new six-year contract, compared to the current $39 per hour. At this rate, East and Gulf Coast longshoremen's wages would slightly surpass those of their West Coast counterparts, who belong to a different union, by the end of their contract in 2027.

The International Longshoremen's Association agreed to suspend a strike that had shut down major ports along the East and Gulf coasts. This decision came after port employers made an improved wage offer. The strike, which had been initiated by the dockworkers union, posed a potential economic challenge just five weeks before national elections. Employers, represented by the US Maritime Alliance, proposed a 62 per cent wage increase over the duration of a new six-year contract, according to a source familiar with the negotiations. This proposed increase, while less than what the union initially demanded, was significantly higher than the alliance's earlier offer. In a statement, the union mentioned that they had reached a tentative agreement on wages and announced that their 45,000 members would return to work, with the current contract extended until January 15. The union also noted that negotiations on other unresolved issues would continue. The alliance released a similar statement. The agreement was reached following pressure from the White House, which had urged both parties to settle the dispute and end the strike—the union's first major walkout since 1977. The wage increase was seen as a significant victory for the ILA and its president, Harold J Daggett, a 78-year-old third-generation dockworker who has been leading the union since 2011. When asked about the tentative agreement at Joint Base Andrews on Thursday evening, President Joe Biden commented that the administration had been working diligently on the issue and expressed hope that the deal would hold. A 62% wage increase would bring the top longshoremen’s wage to just over $63 per hour by the end of the new six-year contract, compared to the current $39 per hour. At this rate, East and Gulf Coast longshoremen's wages would slightly surpass those of their West Coast counterparts, who belong to a different union, by the end of their contract in 2027.

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