Detroit City Wire

MichAuto has issued a statement regarding the resolution of the International Longshoremen Association strike, which involved 45,000 dockworkers across East and Gulf coast ports. The union agreed to suspend its three-day strike until January 15 to allow for further contract negotiations.

The International Longshoremen’s Association and the U.S. Maritime Alliance reached a tentative agreement on wage increases, although specific details were not disclosed. A source familiar with the matter mentioned that the ports increased their wage offer from approximately 50% over six years to 62%. This proposed wage increase will require approval by union members as part of final contract ratification.

President Joe Biden commented on the agreement, stating, "With the grace of God, and the goodwill of neighbors, it’s gonna hold."

During this period until January 15, workers will continue under their previous contract terms that expired on September 30. The union is advocating for a complete ban on automation at ports due to job security concerns. Additional points of contention include pension contributions and royalty distributions from container movements.

Prior to the strike's commencement, both parties had adjusted their initial wage proposals in a sign of potential progress. The strike threatened supply chain disruptions during peak holiday shopping times but did not last long enough to cause significant shortages.

However, fear of shortages led to panic-buying behaviors in Metro Detroit. Retailers like Costco experienced runs on items such as toilet paper and bottled water. Shoppers like Joe Mulligan expressed surprise at the surge in demand: “Even on the weekend, it’s not really crowded like this. This is nuts.”

Economics professor Jeff Smith from Virginia Commonwealth University warned that shortages of perishable goods could arise if disruptions persisted. He noted that items imported from regions like South America and Europe might be affected first due to their perishability.

Smith predicted that normalcy in supply chains might return within seven to ten days once operations resume fully: “They know how to make this time up,” he stated.