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A strike that closed ports on the U.S. east and Gulf coasts will be called off after a dockworkers union and a group representing ocean carriers reached an agreement on Thursday, preventing block a costly blow to the economy ahead of the presidential election.
The agreement extends the International Longshoremen’s Union’s labor contract, which had expired, until January 15. It will allow them to return to work for the first time in three days, the union and transport Line’s team said in a joint statement.
Negotiations, which have been “deadlocked” over wages and automation for months, will now continue, the statement said.
the stop workingstarting on Tuesday, has threatened to upend the US economy by crippling global supply chains and halting imports of fresh food, pharmaceuticals and other consumer goods. JPMorgan analysts estimate that it could cost the US economy up to $4.5 billion a day.
According to a Conference Board analysis, the three dozen affected ports stretch from Maine to Texas and together handle a quarter of the country’s annual international trade, worth $3 trillion.
U.S. President Joe Biden congratulated the union and the United States Maritime Alliance (USMX), which represents carriers, on the deal, saying in a statement that it “demonstrates An important step towards a strong contract.”
Frustration over the economic consequences of the strike, combined with concerns that product shortages could delay relief efforts to states devastated by Hurricane Helene, have opened up a new line of attack on Biden and Vice President Kamala Harris, the Democratic Party candidate, before the election. November 5 election.
Donald Trump, the former president and Republican candidate, declared earlier this week that the work stoppage “would never happen” if he were in the White House.
Business leaders also criticized Biden’s approach to the strike, repeatedly asking him to invoke federal law to temporarily force stevedores to continue unloading container ships. Biden said he wants the groups to come to an agreement on their own.
A coalition of 272 trade groups representing retailers, farmers, restaurants, meat processors, truckers and other industries called the work stoppage a “catastrophic situation.” on Wednesday, with “major negative consequences for our industries and economy.”
It threatens imports of consumer goods from bananas to coffee to clothing. Some Americans even began panic buying and hoarding toilet paper, prompting a trade group representing paper manufacturers to issue a statement saying they did not expect the strike to affect supplies. bow. The American Forest and Paper Association says an estimated 85% of such products are made in the United States.
ILA leaders told picketing workers the deal includes a 62% increase over the six-year term of the contract. ILA members earned between $20 and $39 an hour under the old contract — with overtime wages pushing a third of New York-based workers’ annual earnings above $200,000 in fiscal year 2019-2020.
They are also fighting the introduction of robots at ports, which they say could eliminate jobs. Ports in the Netherlands and Australia are mainly operated by remote-controlled cranes, using few workers.
