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US: Unexpected End To Port Strikes As Dockworkers Accept 62% Pay Increase

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In a somewhat unexpected development overnight, the International Longshoremen’s Association representing dockworkers along the eastern seaboard reached an agreement with port operators to end a three-day strike that, if extended, would risk a notable hit to the US economy. WSJ reports that according to people familiar with the matter the offer of a 62% increase in wages over six years was enough to clinch a deal. A previous offer of 50% was rejected. President Joe Biden offered his support for the deal, saying “Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”

  • The agreement to return to work is only temporary though, with this deal extending the previous contract to 15 Jan 2025. The two sides will continue discussions in the meantime, most notably on the thorny issue of automation.
  • The agreement came out of the blue, with reports on 3 Oct indicating that the union and ports were not close to a deal.
  • The short nature of the strike should mean that its impact on the economy and supply chains proves marginal. WSJ: "Many manufacturers and big retailers, with their busy fall shopping season just starting to kick in, said they could withstand a short strike because they brought in products earlier than usual this year and diverted other cargoes to West Coast ports. But executives said a walkout lasting a week or longer would push up shipping costs and might trigger product shortages."
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In a somewhat unexpected development overnight, the International Longshoremen’s Association representing dockworkers along the eastern seaboard reached an agreement with port operators to end a three-day strike that, if extended, would risk a notable hit to the US economy. WSJ reports that according to people familiar with the matter the offer of a 62% increase in wages over six years was enough to clinch a deal. A previous offer of 50% was rejected. President Joe Biden offered his support for the deal, saying “Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”

  • The agreement to return to work is only temporary though, with this deal extending the previous contract to 15 Jan 2025. The two sides will continue discussions in the meantime, most notably on the thorny issue of automation.
  • The agreement came out of the blue, with reports on 3 Oct indicating that the union and ports were not close to a deal.
  • The short nature of the strike should mean that its impact on the economy and supply chains proves marginal. WSJ: "Many manufacturers and big retailers, with their busy fall shopping season just starting to kick in, said they could withstand a short strike because they brought in products earlier than usual this year and diverted other cargoes to West Coast ports. But executives said a walkout lasting a week or longer would push up shipping costs and might trigger product shortages."