The International Longshoremen’s Association (ILA) had started the stoppage early on Tuesday After negotiations with the United States Maritime Alliance (USMX)which represents shipping companies and terminal operators, reached an impasse.
The strike, in which 45,000 workers participated according to the ILA, stopped the operation of 36 ports in the country through which a wide range of goods pass, from food to electronic products, weeks before the presidential elections.
This Thursday night, both sides announced that “reached an agreement in principle on salaries and agreed to extend the framework contract until January 15, 2025,” with the promise of “return to the negotiating table to discuss all other outstanding issues“. “With immediate effect, all ongoing actions will cease,” they said.
Port workers reached a salary agreement and called off a historic strike
The statement does not detail the terms of the agreement, but The Wall Street Journal, citing close sources, reported that USMX proposed a salary increase of 62% in six years, which allowed the agreement to be closed.
This strike was the first since 1977, after negotiations stalled over union demands of one rise from significant salaries and protection against loss of jobs related to automation.
The president Joe Biden, that he had refused to intervene in the negotiations, alleging respect for collective bargaining rights, celebrated the suspension of the strike late on Thursday.
“I want to thank union workers, shippers and port operators for acting patriotically to reopen our ports and ensure the availability of essential supplies for recovery and reconstruction following Hurricane Helene,” he said in a statement.
Outside the White House, the president added: “They have the next 90 days, they’re going to figure it all out.”
The former Republican president and presidential candidate White House in the November elections, Donald Trump had on Tuesday blamed Biden of the crisis: “I should have reached an agreement,” he accused.
Strike in US ports: from possible shortages to economic impact
Analysts had warned that a prolonged strike could be a serious setback for the U.S. economy, potentially causing shortages of some items and raising prices at a time when inflation has been moderating.
Oxford Economics estimated that the Port strike would reduce the US GDP between US$4,500 and US$7,500 million per weekand that the global impact would depend on its duration.
However, Capital Economics considered that the Fears about the economic impact of the shutdown were “exaggerated”in part because recent supply chain disruptions have made companies more aware of the need to take precautionary measures.
The strike had started at a politically sensitive timealmost a month before American presidential elections, but this provisional agreement relieves the pressure.
Source: Ambito
