President Joe Biden has commended the agreement reached between the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX), effectively ending a port strike that threatened to disrupt the U.S. economy.
What Happened: The agreement, which was announced on Thursday, was met with approval by President Biden, who has been a staunch supporter of the striking workers. “Today's tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” Biden said in a statement, as reported by The Hill.
The ILA revealed that the USMX, a group of companies operating East and Gulf Coast ports, agreed to a pay rise for port workers. As a result, union members are set to return to work immediately.
Biden praised all parties involved in the negotiation process, particularly acknowledging the sacrifices made by the ILA dockworkers during the COVID-19 pandemic.
The president said on X that he applauded ILA and USMX coming together to ensure the “availability of critical supplies for Hurricane Helene recovery and rebuilding.”
Why It Matters: The two-day strike had the potential to significantly impact the U.S. economy and posed political challenges for the Biden administration. The end of the strike comes as a relief, as it threatened to disrupt supply chains.
The agreement includes a substantial wage increase and improved working conditions, addressing the ILA's key demands. According to a Benzinga report, the breakthrough came after port employers offered a 62% increase in wages over six years.
The agreement also includes a contract extension through Jan. 15, 2025, providing time for the two sides to negotiate other issues, including automation on the docks.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
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