The International Longshoremen’s Association (ILA) reportedly suspended its port strike along the East and Gulf Coasts on Thursday after agreeing to hold off until Jan. 15 to negotiate a new contract, according to multiple outlets.
The strike, which began early Tuesday, affected 14 major ports after the union failed to reach a contract deal with the United States Maritime Alliance (USMX). While no final agreement has been reached, sources told CNN that both sides agreed to extend the previous contract until Jan. 15, allowing the union’s more than 40,000 members to return to work.
The extended time will reportedly allow USMX and the ILA to finalize a new six-year contract, with both sides agreeing to a 62% wage increase, according to Reuters. The ILA had initially sought a 77% increase, while USMX had offered nearly 50%, leading to the initial conflict.
Former U.S. Secretary of Labor in the Trump administration, Eugene Scalia, had warned Fox viewers on Wednesday evening that it could cause “extraordinary consequences” for the economy if it dragged on, potentially leading President Joe Biden to file an injunction in court against the unions.
“These strikes can have just extraordinary consequences on the entire economy. Most of the time, when you’ve had a coast-wide strike like this. Up and down the East Coast, the Gulf of Mexico, if they have lasted very long, presidents, Republicans and Democrats, have decided they need to go to court and get an injunction,” Scalia said.
“That’s something, as the ILA president laid it out, you are looking at after two, three weeks, the consequences to the rest of the country become very severe,” Scalia continued. “I think the president will need to give very serious consideration by next week to whether he needs to go to court.”
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