Despite prognosticators suggesting that the International Longshoremen’s Association port strike would lead to an economic calamity, the work stoppage barely lasted three days.
On Thursday night, the striking port workers and the United States Maritime Alliance, which represented the shipping companies, agreed in principle to a deal that would raise the striking workers’ pay by 62% over the next six years. In turn, the union announced that it would cease the strike until Jan. 15 to allow time for a full contract to be negotiated.
The strike was a case study of using available leverage to achieve a stronger negotiating position. The union had asked for a 77% raise over six years, while the shipping companies had offered a much lower 50%. Unsatisfied with the offer, the union and its controversial leader, Harold Daggett, announced the strike, which had the ability to grind large parts of the economy to a halt, barely a month before Election Day.
Daggett and the union’s strategy was shrewd. By striking so close to the election, it created a political trap for President Joe Biden, who had the power to invoke the Taft-Hartley Act and forcibly end the strike, and the Democratic Party. But eager to keep friendly relationships with labor unions amid a contentious presidential election featuring Biden’s Vice President Kamala Harris, the president refused to invoke the act, depriving the shipping companies of their primary source of leverage.
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From there, it was only a matter of time before the companies revised their initial proposal of a 50% pay increase. The economic effects of a prolonged dock strike were too dire for the companies to hold out for long, and in the end, they increased their proposed raise by 12%, while the union decreased their demand by 15%.
Now, to be clear, the dispute is not yet totally resolved. The union and the companies still must come to terms on automation matters, which remain a sticking point, as the union has refused to sign off on any automation that could further dwindle the number of longshore jobs. However, that detail will likely be worked out in the coming weeks and months before the Jan. 15 deadline. For now, the most difficult problem has been worked out, and the strike is over almost as quickly as it began.