The US dock workers and their operations have settled and made a deal that will immediately end the three-day strike that has significantly affected the US shipping industry. This three-day strike caused significant disruption in the country’s maritime trading, with around 45 container ships unable to unload. The deal between the port workers and operators includes a wage hike of 62% over six years, raising wages from $39 to $63 an hour. The strike had widespread economic implications not only for the US but also to some other countries that deal with the US in its East Coast.
The strike ended following intense negotiations between the International Longshoremen’s Association(ILA) workers union and the United States Maritime Alliance(USMX), with the White House playing a crucial role in the resolution. U.S. President Joe Biden’s administration intervened by applying pressure on port employers to increase the wage offer of their workers. White House Chief of Staff Jeff Zients and top economic advisor Lael Brainard led talks with ocean carrier CEOs, urging them to submit a new offer to end the strike. By midday Thursday, a new higher offer was agreed upon, leading to the reopening of the ports.
Also Read- India Smashes Export Record: Hits $776 Billion Milestone
The strike, which involved more than 45,000 port workers, was caused by breakdowns in contract negotiations regarding the wage increase between the union and the port operations. According to both parties, the union sought a wage hike of 77%, while the employers offered a 50% increase. Moreover, the automation in the ports also raised concerns as the workers believed that this automation can be bad for them and can lead to significant job losses.
