US ports to reopen after dock workers and operators strike tentative wage deal

The International Longshoremen’s Association and the U.S. Maritime Alliance announced a deal proposing a 62% wage increase over six years, down from the union’s initial 77% demand [View in browser]( [See all newsletters]( 04 October 2024 US ports to reopen after dock workers and operators strike tentative wage deal [The agreement extends the master contract until January 15, 2025, with plans to negotiate further on outstanding issues. The resolution comes after the U.S. President’s administration supported the union’s stance amidst the strike, which affected 36 major ports, including New York, Baltimore, and Houston.] U.S. dock workers and port operators have reached a tentative deal that will immediately end a three-day strike that has shut down shipping on the U.S. East Coast and Gulf Coast, the International Longshoremen's Association (ILA) union and the United States Maritime Alliance (USMX) said on Thursday. The tentative agreement is for a wage hike of around 62% over six years, a source familiar with the matter told Reuters. The workers union had been seeking a 77% raise while the employer group previously raised its offer to a nearly 50% hike. Both sides said in a statement that they would extend their master contract until January 15, 2025 to return to the bargaining table to negotiate all outstanding issues. - Read: [Shipping lines invoke force majeure due to US East Coast port strike]( "Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume," the statement said. At least 45 container vessels that have been unable to unload were anchored outside the strike-hit East Coast and Gulf Coast ports by Wednesday, up from just three before the strike began on Sunday, according to Everstream Analytics. The ILA launched the strike by 45,000 port workers, its first major work stoppage since 1977, on Tuesday after talks for a new six-year contract broke down. - Also read: [US East Coast port strike to impact trade badly]( U.S. President Joe Biden’s administration has sided with the union, putting pressure on the port employers to raise their offer to secure a deal and citing the shipping industry's bumper profits since the COVID-19 pandemic. The administration repeatedly resisted calls from business trade groups and Republican lawmakers to use federal powers to halt the strike - a move that would undermine Democratic support among unions ahead of the Nov. 5 presidential election. The strike affected 36 ports - including New York, Baltimore and Houston - that handle a range of containerized goods. Economists have said the port closures would not initially raise consumer prices because companies had accelerated shipments in recent months of key goods. However, a prolonged stoppage would have eventually filtered through, with food prices likely to react first, according to Morgan Stanley economists. "After the first week, we can expect some impact on perishable products like bananas, other fruits, seafood, and coffee, meaning fewer goods are reaching consumers, potentially driving up prices," said Tony Pelli, global practice director for security & resilience at BSI Americas. You Might Also Like [Tomato, onion and potato farmers get only a third of retail price: RBI study]( [Agri Business]( [Tomato, onion and potato farmers get only a third of retail price: RBI study]( [In a first, an Indian agency gives out sovereign ratings]( [Companies]( [In a first, an Indian agency gives out sovereign ratings]( [Pricier oil, trade disruption, air/sea route curbs, Chabahar port uncertainty... worries mount for India]( [Economy]( [Pricier oil, trade disruption, air/sea route curbs, Chabahar port uncertainty... worries mount for India]( [The ‘Puja is coming’ vibe missing in Kolkata as companies slash spending amid continuing agitations]( [News]( [The ‘Puja is coming’ vibe missing in Kolkata as companies slash spending amid continuing agitations]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](