Deal reached to end three-day strike at US ports, raising hourly wages; positive.

From Investing.com: 2024-10-03 23:31:15

U.S. dock workers and port operators reached a tentative deal that ends a three-day strike, raising hourly wages from $39 to $63 over six years. The strike threatened shortages of goods and triggered a backlog of ships on the U.S. East Coast and Gulf Coast ports.

The International Longshoremen’s Association (ILA) workers union sought a 77% raise, while the United States Maritime Alliance (USMX) offered a nearly 50% hike. The deal ends the biggest work stoppage in nearly half a century, but issues such as automation and job losses remain unresolved.

President Joe Biden’s administration pressured port employers to raise their offer to secure a deal, acknowledging the shipping industry’s profits during the pandemic. The White House was heavily involved in the negotiations to end the strike and reopen ports for hurricane recovery efforts.

Despite the strike affecting 36 ports and costing the U.S. economy an estimated $5 billion per day, the National Retail Federation welcomed the end of the strike as good news for the economy. The National Association of Manufacturers also praised the deal, emphasizing the importance of preserving jobs and safeguarding supply chains.

Economists believe the port closures will not immediately raise consumer prices due to accelerated shipments in recent months. However, prolonged stoppages could eventually lead to increased food prices as goods become scarce. The goal is to prevent further economic disruptions and ensure a smooth return to normal operations at the ports.



Read more at Investing.com: US port workers and operators reach deal to end East Coast strike immediately By Reuters