US Port Strike Ends After Tentative Deal Reached

By Calcasieu Staff
Published October 03, 2024

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Louisiana – United States – A three-day strike that brought shipping operations on the East and Gulf coasts to a grinding halt has come to an end after the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative deal on wages. The agreement, announced on Thursday, will see a wage hike of around 62% for dockworkers, a significant increase that has been hailed as a major victory for the union.

The strike, which began earlier in the week, had already started to take its toll on the US supply chain. Thousands of containers had been dumped at the wrong ports, and billions of dollars in goods were anchored offshore, unable to be unloaded. Shipping costs had also begun to rise, as congestion built up at ports.

The ILA, which represents around 85,000 dockworkers, had been seeking a significant increase in wages, citing rising costs of living and the need for better compensation. The union had asked for an increase of $5 per hour for each year of the six-year contract, a demand that was met with resistance from the USMX, which represents terminal operators and ocean carriers.

However, after intense negotiations, the two sides reached a tentative agreement that will see wages increase by 61.5% over six years. The deal also extends the Master Contract, which governs the relationship between the ILA and the USMX, until January 15, 2025, allowing the two sides to return to the bargaining table to negotiate other outstanding issues.

The strike had impacted operations at 14 different ports, with around 50,000 ILA members participating. It was the first strike by the ILA since 1977 and had raised concerns about the potential disruption to the US supply chain.

The deal is a significant victory for the ILA, which had been seeking better wages and working conditions for its members. However, the agreement does not resolve all outstanding issues, with the question of port automation still to be negotiated.