CT MarketWatch: ILA Strike Ends, Deal Reached

After days of negotiations to resolve the ILA port strike, the White House pressed shipping CEOs to reopen ports and accelerate recovery efforts following a devastating hurricane. Acting Secretary of Labor Julie Su and other officials convinced carriers to present a higher wage offer to the union. This led to a tentative agreement, with ILA workers expected to return to work by Friday. The strike had halted operations at 36 key ports, affecting the flow of goods and causing concerns about economic disruptions.

The new deal, which sources close to the talks said came together quickly, provides a pay raise of 61%, or $4 per hour over each of the six years of the pact, and extends the master contract to Jan. 15, 2025, to allow the sides to negotiate outstanding issues. A final agreement would still have to be ratified by union members.

While the strike was brief, its impact was significant, with over 45 ships unable to unload and analysts estimating daily losses of $5 billion to the U.S. economy. Business leaders welcomed the deal, emphasizing that reopening ports was essential to safeguard supply chains and jobs. The agreement still needs to be ratified by ILA members, but this development, along with White House intervention, helped prevent further economic strain and ensured a return to normal port operations.