US Port Strike Ends... Agreement Reached on 62% Wage Increase Proposal

The strike by port workers in the southeastern United States ended on the 3rd (local time).

According to the Wall Street Journal (WSJ), the International Longshoremen's Association (ILA) reached a tentative agreement on wages with the employers, the United States Maritime Alliance (USMX), on the same day. This progress came after the employers proposed a 62% wage increase over the next six years, higher than the previous 50% offer.

[Image source=AFP Yonhap News]

Thus, the U.S. port strike ended after 47 years since 1977. Cargo loading and unloading operations at 36 ports along the U.S. East Coast and the Gulf of Mexico, which had been halted for the past three days, are also expected to resume soon. However, the union confirmed that while they will suspend the strike and extend the collective bargaining agreement until January 15 next year, they will reopen discussions with the employers regarding job protection issues related to dock automation.

Earlier, port workers began striking on the 1st after failing to narrow differences over wages during the renewal process of the collective bargaining agreement that expired on the 30th of last month. WSJ reported that the strike "shut down container ports from Maine to Texas, disrupting everything from supermarket banana supplies to automobile production at U.S. factories," and that "the White House pressured the employers, leading to the new wage increase proposal."

Locally, there had been analyses that if the port strike prolonged for more than a week, transportation costs would rise, inventory shortages would worsen, and there could be repercussions for next month's presidential election.