04 October 2024

A strike of more than 45,000 workers at a series of US ports that caused billions of dollars in damage has officially ended after reaching an agreement to increase wages by 62%.

US port workers protest against automation amid fears of unemployment

A three-day strike by more than 45,000 workers at 36 ports on the US East Coast and the Gulf of Mexico that paralyzed cargo shipments ended on October 3 after a temporary deal was reached.

The temporary deal includes a record wage increase of about 62% over six years, raising the average hourly wage to $63 from $39, two sources familiar with the matter told Reuters.

The union of port workers and investors said in a statement that it would extend the main contract until January 2025. After that period, negotiations will resume to resolve outstanding issues.

“Effective immediately, all current strike actions will cease and all work will resume,” the statement said.

The strike, which began on October 1 and involved more than 45,000 workers at 36 ports stretching from Texas to Maine, is the first strike to occur at ports on the US East Coast and Gulf Coast since 1977.

The strike has severely affected the supply of goods, especially when the US is in the recovery phase after Hurricane Helene.

Analysts working at JP Morgan Bank said that each day of the strike could cost up to $5 billion due to disruptions in trade activities.

It is known that the US port workers, represented by the International Longshoremen's Association (ILA), have requested a 77% wage increase compared to the current wage, based on the profits the industry has achieved in recent years.

However, the US Maritime Alliance (USMX), representing US ports, only agreed to the proposed wage increase of nearly 50%.

Previously, negotiations between the ILA and USMX were interrupted in June after the union accused USMX of violating the contract by applying automation processes at some ports, causing many workers to fear losing their jobs.

The US President Joe Biden's administration later also voiced support for the union, putting pressure on US port leaders to increase wages for workers.

He also pointed out that the shipping industry has achieved record profits since the COVID-19 pandemic.

“Today’s interim agreement, which includes record wages and extended collective bargaining, is an important step toward a strong future,” the president said in a statement after the union and the port reached a deal.

“I want to thank our union workers, shipping companies, and port operators for reopening our ports and ensuring the supplies we need to recover and rebuild from Hurricane Helene,” he said.

The strike comes just five weeks before the US presidential election, where both Republican Donald Trump and Democratic Kamala Harris are trying to appeal to working-class voters.

Source: Tuoi tre