A strike that shuttered ports on the East and Gulf coasts is over — for now.
A tentative deal brought members of the International Longshoremen's Association (ILA) back to work Friday. That deal nets workers a $4-an-hour raise for each year of the six year contract; 62% over the life of the contract, numerous news outlets reported.
[RELATED: Workers strike at East, Gulf Coast ports]
Union members agreed to extend the contract with the United States Maritime Alliance (USMX) until Jan. 15 while final details are worked on in the full agreement, which will then be voted on by union members.
President Joe Biden praised the agreement.
"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. He previously declined to force dock workers to stay on the job. "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."
The American Trucking Associations also applauded the end of the work stoppage.
"We are glad to see the strike has ended, but it should have never happened int he first place," said ATA President and CEO Chris Spear. "This is a deal that could have been cut months ago had both parties stayed at the table. That was the job of this administration, which it refused to do. This failure was not without cost, impacting real Americans, including millions reeling from a natural disaster."
The strike lasted two days at 14 ports from Maine to Texas. As much as $5 billion in economic damage per day may have occurred, the National Association of Wholesaler-Distributors (NAW) said.
"We're pleased that the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative wage agreement, pausing the strike and reopening our ports," says Eric Hoplin, president and CEO of NAW. "While the extended contract through Jan. 15 allows time for further negotiation, key issues like port automation remain unresolved. Additionally, as ports clear the backlog in the coming weeks, businesses and consumers will still feel the strain of increased inflationary costs."
The National Association of Manufacturers said more than 68% of all containerized exports and more than 56% of containerized imports flow through East and Gulf Coast ports, representing an average daily trade value of more than $2.1 billion. That includes more than 76% of containerized vehicle exports and more than 54% of containerized vehicle imports.
"This strike underscores a critical need for reform," Hoplin continued. "No single union should the power to cripple our economy. Our labor laws, written in a different era, should reflect today's interconnected supply chain. Manufacturing, transportation, warehousing and distribution are all essential to our national security, and our policies should recognize their vital role in sustaining the flow of goods and services."
Some ports remained closed as facilities prepare to resume work to clear the backlog, while others are looking to extend hours to help clear goods.
The Port of Virginia in Norfolk resumed operations Friday, encouraging motor carriers to use its reservation system for Saturday, Sunday and Monday.
"The process of restarting our cargo operations as many components," the port said in a release. "Our experienced team is working to bring the terminals back online in a safe and orderly manner. ... We estimate it will take 24 hours to fully restore operations with many components of the operation being restarted in parallel. We appreciate the patience of our customers and partners through this process."
