US dockworkers have agreed to end a three-day strike that has brought shipping along the East and Gulf coasts to a standstill, after reaching a tentative six-year wage deal with the United States Maritime Alliance (USMX).
The strike, which began on October 1, halted container traffic at 36 ports from Maine to Texas, affecting major hubs such as New York, Baltimore and Houston.
Members of the International Longshoremen’s Association (ILA) union, representing 45,000 workers, walked out for the first time since 1977. The economic cost of the strike was estimated by JP Morgan analysts at $5 billion per day. Employees returned to their posts after the USMX agreed to a 62% pay increase over six years. The deal represents a significant improvement on employers’ previous offer of a 50% increase.
Despite this resolution, the dockworkers only suspended their strike until January. The union has said it will return to the bargaining table to negotiate other issues, particularly automation, which the ILA fears will lead to widespread job losses.
President Joe Biden welcomed the agreement and emphasized the importance of dockworkers to the country’s economy. “Today’s tentative agreement on record wages and an extension of the collective bargaining process represents critical progress toward a strong contract,” Biden said. Vice President Kamala Harris also praised the deal and reiterated the power of collective bargaining and the importance of fair wages for essential workers.
The strike began amid frustrations over automation projects at certain ports, which the ILA said threaten jobs. ILA President Harold Daggett, an outspoken critic of these automation initiatives, warned the shipping companies that workers were indispensable. “We’re going to show these greedy bastards that you can’t survive without us,” he said at the start of the strike.
The strike exacerbated supply shortages, especially in southern states struggling to recover from Hurricane Helene. Shipping companies and port operators were under pressure to resolve the dispute and ensure critical supplies reached affected areas. At noon on the third day, the shipping companies agreed to the improved wage offer, paving the way for a preliminary agreement.
The ILA’s success in securing a significant wage increase has attracted attention, with many dockworkers already earning six-figure salaries. More than half of the workers at the Port of New York-New Jersey reportedly earn more than $150,000 per year, with some making more than $250,000. ILA president Daggett himself earned more than $900,000 last year and is known for his luxurious lifestyle, which includes owning a Bentley and a 70-foot yacht.
While the wage deal has averted an immediate crisis, negotiations over the future of automation at the ports are expected to be contentious as the union seeks to protect jobs amid evolving industry practices.