US dockworkers’ union to pause strike to allow time for new negotiations
The three-day dock workers’ strike, which sparked panic buying in the United States over concerns about potential supply chain problems, has been suspended after the dock workers and port operators reached a provisional agreement.
“With immediate effect, all current work will be halted and all work covered by the Framework Contract will resume,” both parties said in a joint statement on Thursday evening.
Under the deal, members of the International Longshoremen’s Association will see a pay increase of about 62 percent.
But before the wage increase takes effect, the dockworkers’ union’s nearly 45,000 members must ratify a new contract — which they hope to fully finalize by Jan. 15.
In the meantime, the two sides will continue negotiations on several other contract issues – including protection against automation – as they return to work under their existing contract.
The three-day dock workers’ strike has been suspended after port workers and port operators reached a provisional agreement on Thursday
Members of the International Longshoremen’s Association will not have to vote on whether to suspend the strike, which began Tuesday over wage disputes and the automation of gates, cranes and containers that move trucks at 36 ports from Texas to Maine.
The union had demanded a five-dollar-an-hour wage increase in each of the next six years, which amounted to a 77 percent wage increase over six years. according to NPR.
Members also demanded higher pension contributions and a fair distribution of royalties paid on the containers that members moved.
The strike announcement came at the height of the holiday shopping season at the ports, which handle about half the cargo from ships moving in and out of the United States.
Goods ranging from Shipments of food to cars were then blocked – which JPMorgan analysts say could cost the economy as much as $5 billion a day. according to the Guardian.
Eric Clark, portfolio manager at Accuvest Global Advisors, also shared this USA TODAY: ‘Any strike lasting longer than a week could cause shortages of goods for the holidays.
“We could end up with six months of inflation that is comparable to or worse than the peak inflation levels of a year ago.”
The strike began Tuesday over wage disputes and the automation of gates, cranes and trucks used to move containers at 36 ports from Texas to Maine.
Members of the International Longshoremen’s Association had demanded a five-dollar-an-hour wage increase in each of the next six years, which amounted to a 77 percent wage increase over six years, higher pension contributions and a fair distribution of royalties paid on the container members moved
The news prompted Virginians to stock up on rolls of toilet paper, but most retailers in the United States stocked up on shipped items early in anticipation of the strike.
But many U.S. retailers stockpiled or shipped their goods early in anticipation of the strike.
The White House sought to downplay the economic impact of the strike, despite warnings from House Republicans and more than 170 industry groups that a work stoppage would be devastating as dozens of container ships lined up off the coast waiting to deliver their cargo to distribute.
Dozens of cargo ships lined up offshore during the strike to distribute their goods at U.S. ports
As news broke that the two sides had reached a tentative agreement and that the International Longshoremen’s Association would pause their strike, President Joe Biden told reporters: “With the grace of God and the goodwill of the neighbors, it will hold .’
In a later statement, he praised both sides “for acting patriotically to reopen our ports and ensure the availability of critical supplies for the recovery and reconstruction of Hurricane Helene.”
The president went on to say that collective bargaining is “critical to building a stronger economy, from the center and the bottom up.”