Supply Chain Bottlenecks Averted After Port Strike Suspended
The suspension of the International Longshoremen’s Association (ILA) strike that affected 36 ports across the Atlantic and Gulf Coasts is welcome news for retailers and consumers concerned about shortages in the midst of Hurricane Helene cleanup efforts and ahead of the busy holiday season. Late on Oct. 3, the ILA agreed to halt the work stoppage until Jan. 15 and come back to the table for talks with the U.S. Maritime Alliance (USMX).
As part of that short-term deal, the union and USMX made a tentative deal on wages. The deal is said to include a $4-per-hour bump in pay over each of the six years of the contract. That amounts to a nearly 62% hike in wages.
“The retail industry is relieved to see positive progress in the ILA and USMX contract negotiations that ensures the vital East and Gulf Coast ports are open and fully operational,” noted the Retail Industry Leaders Association (RILA) in a statement. “Without the specter of disruption looming, the U.S. economy can continue on its path for growth, and retailers can focus on delivering for consumers. We encourage both parties to stay at the negotiating table until a final deal is reached that provides retailers and consumers full certainty that the East and Gulf Coast ports are reliable gateways for the flow of commerce.
The National Retail Federation (NRF) likewise urged the parties to focus on fruitful negotiations. “The decision to end the current strike and allow the East and Gulf Coast ports to reopen is good news for the nation’s economy. It is critically important that the International Longshoremen’s Association and United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families,” asserted NRF President and CEO Matthew Shay.
The three-day strike came to an abrupt end after the federal government applied pressure to keep the supply of goods flowing at a crucial time, without having to invoke the Taft-Hartley Act.
The White House released a statement from President Biden lauding the move:
“Today’s tentative agreement on a record wage and an extension of the collective- bargaining process represents critical progress towards a strong contract. 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 US Maritime Alliance for working hard and putting a strong offer on the table.”
