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The strike had disrupted the supply chain, economy, inflation, and even the US election. Panic buying was reported in big-box stores and supermarkets in multiple states, and over 40 container ships were backed up outside US ports due to the strike. The strike also drew concern over its potential impact on the automotive aftermarket industry, which risked losing up to nearly $340 million each day.
The ILA’s key demands during the strike included a $5 per hour wage increase for each of the six years of a new master contract, assurance against automation or semi-automation of jobs, and a guarantee that all Container Royalty monies would go to the ILA. The union’s demand for higher wages translated into 77% growth in the next six years, while the USMX agreed to a nearly 50% increase in wages.
Tentative Agreement and Wage Increase
The breakthrough came after the USMX offered a 62% increase in wages over the next six years. The details of the agreement on wage increase have not been disclosed so far. However, the tentative deal has been celebrated by the strikers, who are set to see their pay increase significantly over the next six years.
US President Joe Biden expressed support for the workers and did not invoke the Taft-Hartley Act to end the strike. Instead, he directed high-ranking officials to advance negotiations between the parties. The White House stated that both Biden and Vice President Kamala Harris were closely monitoring potential supply chain impacts and assessing ways to address them.
The strike also had a significant impact on the shipping industry. The strike ended sooner than investors had expected, weakening shipping stocks across Asia. Pricing platform Xeneta said it was likely to take two to three weeks for the normal flow of goods to be reestablished.
Impact on Industries and Controversies
The strike also had implications for the roofing industry. Companies installing roofing systems that rely on critical components coming over in these ports were expected to feel the effects first. The industry as a whole, especially companies that import materials and goods from Europe, could be affected.
The strike was not without controversy. In 2005, the U.S. Justice Department accused ILA President Harold Daggett of being an associate of the prominent Genovese crime family. He was, along with fellow ILA member Arthur Coffey, charged with extortion conspiracy and mail and wire fraud conspiracy, according to the Journal of Commerce. Both were later acquitted.
Last time, in 1977 the ILA strike, driven by demands for higher wages and better working conditions, had similar impact on the US economy. The recent strike further highlighted the growing concern among workers about the impact of automation on their jobs as well with the AI taking over operations at the airports soon.
