US dockworkers have agreed to end a three-day strike that brought shipping to a standstill along the east and Gulf coasts, after reaching a tentative six-year pay deal with the United States Maritime Alliance (USMX).
The strike, which began on October 1, halted container traffic at 36 ports from Maine to Texas, affecting major hubs like New York, Baltimore, and Houston.
Members of the International Longshoremen’s Association (ILA) union, representing 45,000 workers, walked out for the first time since 1977. The economic cost of the strike was estimated at up to $5 billion per day by JP Morgan analysts. Workers returned to their posts after the USMX agreed to a wage increase of 62% over six years. The deal represents a significant improvement over the employers’ earlier offer of a 50% rise.
Despite this resolution, the dockworkers have only suspended their strike until January. The union has said it will return to the bargaining table to negotiate on other issues, particularly automation, which the ILA fears will lead to widespread job losses.
President Joe Biden welcomed the agreement, emphasizing the importance of the dockworkers to the nation’s economy. “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” Biden said. Vice-President Kamala Harris also praised the deal, reiterating the power of collective bargaining and the importance of fair wages for essential workers.
The strike began amid frustrations over automation projects at certain ports, which the ILA claims threaten employment. ILA President Harold Daggett, a vocal critic of these automation initiatives, warned the shipping lines that workers were indispensable. “We’re going to show these greedy bastards you can’t survive without us,” he said at the start of the walkout.
The strike exacerbated supply shortages, particularly in southern states struggling to recover from Hurricane Helene. Shipping lines and port operators were under pressure to resolve the dispute to ensure critical supplies reached affected areas. By midday on the third day, shipping companies agreed to the improved wage offer, paving the way for the tentative agreement.
The ILA’s success in securing a significant pay rise has drawn attention, as many dockworkers already earn six-figure salaries. Over half of the workers at the New York-New Jersey port reportedly earn more than $150,000 annually, with some earning more than $250,000. ILA President Daggett himself earned more than $900,000 last year and is known for his luxurious lifestyle, including owning a Bentley and a 76-foot yacht.
While the pay deal has averted an immediate crisis, negotiations over the future of automation at the ports are expected to be contentious as the union seeks to protect jobs amid evolving industry practices.