What happened
The International Longshoremen’s Association (ILA), the union representing some 45,000 striking dockworkers at East Coast and Gulf ports, suspended its three-day walkout Thursday night after the U.S. Maritime Alliance, which represents ports and shipping companies, sweetened its wage offer. The tentative deal — reportedly a 62% hourly pay increase over six years — extended the recently expired contract to Jan. 15. The 36 ports that closed Monday night, from Maine to Texas, will start reopening today.
Who said what
“With the grace of God, and the goodwill of neighbors,” President Joe Biden said to reporters last night, the deal is “gonna hold.” In a subsequent statement, Biden said “collective bargaining works” and applauded the ILA and shipping companies “for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.”
Biden had rejected pressure from Republican lawmakers and business trade groups to force the union back to work. But senior White House officials reportedly worked behind the scenes to nudge the shipping companies to up their offer from a 50% raise and urge the ILA to accept less than its original ask of 77%.
The settlement is a “big plus” for Biden and also Vice President Kamala Harris as the presidential election approaches, The Associated Press said. It pushed any “potential shortages” and resulting inflation past the November vote, without crossing union workers. Economists and big retailers didn’t expect much disruption from this short of a strike.
What next?
The ILA and Maritime Alliance have three months to iron out the details of the new contract, notably the union’s demand for a ban on dock automation. The dockworkers “see new technology as a killer of jobs,” The Washington Post said, while shipping lines are “seeking new ways to improve efficiency at U.S. ports, which analysts say have lagged behind those in other countries.”