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East Coast port union back to work after tentative deal

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Announcements | International
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International Longshoremen’s Association (ILA) dock workers announced late Thursday that they will return to work today after coming to a tentative agreement with the United States Maritime Alliance USMX. 

The tentative agreement on wages will extend the contract until Jan. 15, an ILA press release says. The two parties will return to the bargaining table to negotiate all other outstanding issues. 

CNN reports the agreement on wages is a $4-per-hour raise for each year of the six-year contract. It says the pay increase is about a 10% increase for the contract’s top pay of $39 an hour in the first year. It would raise wages 62% through the entire term of the contract. 

President Joe Biden applauded the decision in a statement released by the White House

“Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” Biden said in the release. “I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic. And I applaud the port operators and carriers who are members of the U.S. Maritime Alliance for working hard and putting a strong offer on the table.”

Collective bargaining is critical to building a stronger economy, Biden said. 

“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding,” he said.

Acting Secretary of Labor Julie Su met with both parties during the final negotiations, according to CNN. It says Su also was present during a deal between West Coast port workers in 2023. 

ILA workers went on strike Tuesday impacting ports from Texas to Maine. 

The Alliance for Automotive Innovation (Auto Innovators) asked the White House to “broker a resolution,” Reuters reported. 

“A protracted strike will be debilitating to the auto supply chain and set off economic and national security ripples across the country – harming auto communities and consumers,” said John Bozzella, Auto Innovators CEO, when the strike started. 

He told Reuters that the ports handle 34% of all U.S. motor vehicle and parts trade. This was worth $135.7 billion last year. 

The Biden administration said Tuesday it would not be invoking the 1947 Taft-Hartley Act, which gives the president the authority to order striking dock workers back to work, according to the New York Times. 

President George W. Bush invoked the Taft-Hartley Act in 2002 after an 11-day shutdown of 29 West Coast ports, according to the New York Times. It says President Richard Nixon also invoked the act in 1971. 

Steve Hughes, CEO of HCS International, told Reuters Tuesday that most automakers could survive some time without vehicle deliveries. He said a longer strike, lasting weeks could be a tragedy.

Images

Featured image: Aerial view of Port Newark and Elizabeth, New Jersey shipping and logistics area from airplane window, New York. (Credit: Alexander Shapovalov)

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