Port strike suspended due to tentative wage deal 

Business

Hailey Whitlock, Staff Writer 

For the first time since 1977, the International Longshoremen’s Association called for a port strike along the East and Gulf Coast beginning on Oct. 1, 2024. In response to the expiration of the previously determined six-year contract, the union called for higher wages for port workers and guarantees against automation at the ports to protect against layoffs. The strike had the ability to cause severe economic damage to the nation as the closure of key ports adversely impacted the ability to transport products, leaving businesses on edge. According to JPMorgan Chase & Co., for every day of the shut down, economic loss will total between $3.8 and $4.5 billion dollars. 

The strike involved the closure of 36 ports ranging from Maine to Texas, halting the transfer of goods ranging from food products to manufacturing parts necessary to keep American employees able to work. According to AP News, approximately 45,000 dock workers took part in the strike, refusing to work until demands for wages were met. A key point of contention is the lack of increase in wages for port workers following the pandemic, even as, according to NPR, some ocean carriers saw an 800% increase in profit during this time period. The United States Maritime Alliance offered an almost 50% wage increase over the next six-year period. However, this did not align with the union’s goal of a 77% wage increase within six years and a complete ban on automation at ports. 

The union had been willing to court the idea of a $4-per-hour wage increase for the next year. However, when the United States Maritime Alliance countered with a $3-per-hour wage increase, Harold Dagget, a leader of the International Longshoremen’s Association, refused the offer very strongly, prompting the strike. In a Facebook post, Daggett asserted, “We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes.” 

When faced with the economic disaster of the strike, NPR stated that every day over $2 billion dollars worth of goods go through the ports affected by the strike, President Biden refused to use executive authority to halt the strike. The Taft-Hartley Act, which was passed in 1947, allows the president to exercise powers to keep the ports open and employees working. When questioned if Biden would consider utilizing this act to end the port strike, Biden replied to CNN reporters, “No because it’s collective bargaining, and I don’t believe in Taft-Hartley.” The generally pro-union president later wrote, “It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.” 
Without government intervention and the increasing loss of profits, the United States Maritime Alliance agreed to a $4-an-hour wage increase on top of a base pay of $39, allowing an immediate raise of 10%, according to CNN. Further, union members will receive a $4 wage increase for each year of the six-year contract, amounting to a $24 wage increase by 2030 and a 62% wage increase. Following this offer, the strike was called out after three days. Nevertheless, the issue of port workers is not yet settled as leaders are less than pleased with the increased automation in the industry. According to CNN, Daggett stated, “Since Covid, they’re making billions and billions of dollars. But they don’t want to share it. They’d rather see a fully automated terminal right here on the East Coast so they can make more money.” The two parties have agreed to end the strike, extending the current contract until Jan. 15, 2025 to negotiate further issues.

Leave a comment