East and Gulf Coast Port Workers Temporarily Return to Work Friday After Negotiation Terms Met

East and Gulf Coast Port Workers Temporarily Return to Work After Negotiation Terms Met

The International Longshoremen’s Association (ILA) members temporarily returned to work this morning, October 4. The ILA and US Maritime Alliance (USMX) have come to a tentative agreement regarding the working wages of union members. 

The ILA members will be receiving a $4-per-hour raise each year throughout the six year contract, which amounts to a 61.5% increase from the current wages. The previous contract between the ILA and USMX that expired on September 30 will now be extended through January 15th while further negotiations take place. 

While the strike only lasted a short period of three days, the effects of the strike will likely take around three weeks to return to normal operations. Over the last week, we saw a significant amount of congestion around the East Coast ports with thousands of containers being dropped at the wrong ports, as well as billions of dollars in goods anchored offshore. Ahead of the strike, we also saw a rise in consumer panic purchases, even for items that were not at risk of being affected. 

The National Association of Manufacturers stated that a lasting agreement between the ILA and USMX is necessary to avoid a higher cost of damage to the economy. Another strike could cost billions of dollars to the economy and would heavily affect the GDP. 

As always, Western Overseas is dedicated to keeping our customers informed, and will continue to provide updates as they unfold. Please reach out to your Western Overseas agent with any questions or concerns.

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