(FARGO, ND)– Late on Thursday evening, members of the International Longshoremen’s Association and management groups reached a tentative deal on wages after tens of thousands of union members working from Maine to Texas walked off the job Tuesday morning. The strike had led to uncertainty about the movement of supplies as the nation heads into the holiday season.
According to the reports, the two sides are agreeing to extend the expired contract until January 15th to allow time for final details to be worked out and ratified by rank and file members of the union. Sources say the new agreement on wages amounts to a $4-per-hour raise for each year of the six-year contract. In total, with five subsequent pay hikes, wages would be raised by 62% over the duration of the contract.
Numerous stakeholders in agriculture commented on the news of agreement being reached on Thursday evening. “It is a relief that a tentative agreement has been reached and the ports will be open for business once again,” says Mike Seyfert, the President and CEO of the National Grain and Feed Association (NGFA). “For U.S. farm products to flow smoothly to domestic and international markets, it is essential for all parts of the supply chain to be fully functioning. The shutdown of these vital shipping ports was already starting to create big problems for NGFA’s members and America’s farmers during harvest season. Left unresolved, this strike could have led to higher transportation costs for agricultural shippers and jeopardized valuable customer relationships. For the sake of rural America, we hope that the parties involved will work diligently between now and January 15 to find a long-term agreement that works for both sides and keeps our shipping channels open.”
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom welcomed the news as well saying in a statement that “on behalf of USMEF’s member companies and organizations, I want to thank all parties involved in the effort to get cargo moving again off the East and Gulf Coasts. This is a tremendous relief to everyone in the U.S. meat and livestock industries, as about $100 million worth of beef and pork products are exported every week through East and Gulf Coast ports. Exports are a critical revenue stream at all levels of the U.S. red meat supply chain, and our industry needs all U.S. ports operating to meet the needs of our international customers and to maintain the United States’ reputation as a reliable red meat supplier.”
Mike Steenhoek, Executive Director of the Soy Transportation Coalition, reacted to the news saying in part “of all the occupations in the world, farmers are among those who experience the highest degree of unpredictability and uncertainty. Despite these challenges, farmers show a remarkable ability to predictably and reliably provide food for U.S. and international customers. It is therefore not unreasonable to insist that port workers and port operators provide a similar degree of reliability to agriculture and the many industries that depend upon them. We sincerely hope a lasting agreement can be achieved by January 15th that benefits both parties. We continue to not pick sides between the ILA and the USMX, but we most certainly are on the side of the American farmer. Having a reliable system of ports is clearly in the best interest of the American farmer.”
Again, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) released a joint statement Thursday evening announcing an end – at least temporarily – to the work stoppage that shut down the East and Gulf Coast ports earlier this week.