The cessation of the U.S. dockworkers' strike results in a 62% wage boost.
After a three-day long standoff, dockworkers along the U.S. East Coast have decided to go back to their jobs. According to a statement released by both the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX), they've reached a preliminary agreement on wages and have extended the master contract until January 15, to revisit and settle other pending matters.
As per CNN reports, both parties have agreed to a six-year contract. Each year will see an increment of four dollars in hourly wages. The union's initial demand was for a five-dollar increment. Over the course of six years, this equates to more than a 60% increase, as stated by CNN and CNBC, who cite sources involved in the agreement process. The topic of port automation will be tackled at a later time.
The strike started on Tuesday when around 45,000 dockworkers, affiliated with the ILA, stopped work due to unsatisfied wage negotiations with the USMX. The ILA was pushing for substantial wage increases and safeguards against possible job loss due to increasing automation. As reported by media, the union was seeking a 77% wage hike over six years. Despite the employers offering nearly a 50% income boost, the walkout continued.
U.S. President Joe Biden, a proponent of labor unions, had urged for swift negotiations from the beginning. Most recently, United States Transportation Secretary Pete Buttigieg stated that he believes the employers and workers are not as far apart as they might perceive. In an interview with CNBC, Buttigieg suggested that both sides should return to the negotiating table, settle the matters, and reactivate the ports. Buttigieg urged the shipowners to exhibit some flexibility, considering their recent profits spike, and to now contribute a portion of it.
Approximately half of the U.S.'s container volume flows through the East Coast ports. ILA members are responsible for loading and unloading ships as well as maintaining the port equipment.
The resolution of the dockworkers' strike could potentially pave the way for further discussions about economic and monetary integration within the U.S. maritime industry. Such a union, encompassing both employers and workers, could bring about a more stable and harmonious work environment.
The economic and monetary union in the maritime industry could significantly reduce operational costs, increase efficiency, and provide a more competitive edge for U.S. ports in the global market.
