What to Know: The East and Gulf Coast Ports Strike Ends With Tentative Deal

A long strike would have become a problem for President Joe Biden and, by extension, Vice President Kamala Harris, in the final weeks leading up to the 2024 presidential election.

Annie Mulligan|AP

Stacked containers line the Bayport Container Terminal during the first day of a dockworkers strike on Oct. 1 in Houston.

Key Takeaways:

• Thousands of members of the International Longshoremen’s Association went on strike this week across East and Gulf Coast ports.
• The union on Thursday agreed to suspend the strike pending a tentative deal.

A strike among dockworkers and longshoremen on the Eastern Seaboard and Gulf Coast that began this week came to a close Friday as thousands of workers returned to the ports.

Members of the International Longshoremen’s Association went on strike against the U.S. Maritime Alliance, or USMX, at 12:01 a.m. Tuesday, effectively cutting off the flow of imports and exports into and out of the ports. They were back to work on Friday after the parties reached a tentative agreement until Jan. 15.

The news is a relief to the Biden administration as the strike could have become a problem for President Joe Biden – and, by extension, Vice President Kamala Harris – in the final weeks leading up to the 2024 presidential election.

“We’ve been working hard on it. With the grace of God, it’s going to hold,” Biden said Thursday about the tentative deal.

Biden was asked Sunday if he planned to invoke the Taft-Hartley Act, a 1947 labor law Republicans pressured him to use that would have forced the workers to return to their jobs.

“No,” Biden told reporters. “Because it’s collective bargaining, and I don’t believe in Taft-Hartley.”

Of course, invoking the law would have been politically risky for Biden, who often presents himself as the “most pro-union president in history.” But without it, experts said the Biden administration’s toolkit to end the strike was limited.

“Collective bargaining is the best way for workers to get the pay and benefits they deserve,” Biden said in a statement on Tuesday. “I have urged USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the workers of the International Longshoremen’s Association that ensures they are paid appropriately in line with their invaluable contributions.”

Why Did Dockworkers Strike and What’s in the Tentative Deal?

The strike followed months of stalled contract negotiations between the union and USMX. The union sought higher wage increases, accusing the shipping industry of taking in record profits that aren’t shared with workers.

“Our members don’t work typical 9-to-5 jobs; they work extraordinary hours, sacrificing time with their families,” the ILA said in a statement. “Our position is firm: we believe in the value our incredible rank-and-file members bring to this industry and to our great nation. They deserve a contract that recognizes their contributions, secures their jobs and reflects the profits generated by their labor.”

The details of the tentative deal have not been made public. It reportedly will increase wages by 62 percent over the course of a new six-year contract.

The union was also seeking protections for automation at the ports, saying it is “steadfastly against any form of automation – full or semi – that replaces jobs or historical work functions.”

“We will not accept the loss of work and livelihood for our members due to automation,” the association said. “Our position is clear: the preservation of jobs and historical work functions is non-negotiable.”

It’s unclear if the new contract addresses the automation issue. The parties said they would “return to the bargaining table to negotiate all other outstanding issues.”

What Products Were Threatened by the Port Strike?

A long strike could have impacted U.S. supply of fruits, automobiles and other goods.

A one-week strike would cost the U.S. economy about $2.1 billion, according to an estimate from the Anderson Economic Group.

“A strike lasting longer than one week will begin to impact retailers and manufacturers as supply chain movement grinds to a halt,” the group wrote.

The Port of New York and New Jersey and Port Wilmington in Delaware were included in the strike. A long strike would have threatened supplies of seafood, chocolate, alcohol, bananas and cherries that typically go through the ports.