Port strike: Tentative agreement sees ILA go back to work

In a joint statement, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) say “they have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume.”

Someone who may not be that surprised by this announcement is President Joe Biden. Here’s what he said this morning in a brief exchange with reporters before boarding Air Force One.

Q Mr. President, can the country afford the port strike? Can the country afford these ships to stay off (inaudible)?

THE PRESIDENT: I think we’re making progress on that.

Q How much progress, sir?

THE PRESIDENT: We’ll find out soon.

After the tentative agreement was announced, President Biden released this statement:

“I want to applaud the International Longshoremen’s Association (ILA) and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports. 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.

“I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding. Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.“

Vice President Kamala Harris released this statement:

“Tonight the International Longshoremen’s Association (ILA) and the United States Maritime Alliance came together to reach a tentative agreement that reopens the East Coast and Gulf ports, and I want to applaud all involved for their efforts. This step indicates progress toward a strong contract and represents the power of collective bargaining. As I have said, this is about fairness – and our economy works best when workers share in record profits. Dockworkers deserve a fair share for their hard work getting essential goods out to communities across America.“

MANUFACTURERS AND RETAILERS REACT

National Association of Manufacturers President and CEO Jay Timmons released the following statement: 

“Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen. By resuming work and keeping our ports operational, they have shown a commitment to listening to the concerns of manufacturers and other industries that rely on the efficient movement of goods through these critical gateways. This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions.

“Manufacturers depend on the stability of our ports to continue building, innovating, delivering products to American families and supporting communities across the country. We commend the International Longshoremen’s Association and the U.S. Maritime Alliance for coming together in the spirit of collaboration and urge both parties to use this time to reach a fair and lasting agreement. Another strike would jeopardize $2.1 billion in trade daily and could reduce GDP by as much as $5 billion per day. We cannot afford that level of economic destruction.”

The National Retail Federation released the following statement from NRF President and CEO Matthew Shay following the announcement:

“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.