A potential strike by port workers on the U.S. East Coast and Gulf Coast could be averted as a port operator alliance has made a new wage proposal to the union. The International Longshoremen's Association (ILA), representing 45,000 port workers, and the U.S. Maritime Alliance (USMX), an employer group, are in negotiations as their labor contract is set to expire.
USMX stated that it has proposed nearly a 50% wage increase and exchanged new suggestions to extend the current main contract. This move is seen as a step towards resuming comprehensive collective bargaining on other unresolved issues in an effort to reach an agreement.
JPMorgan analysts estimate that a strike could cost the U.S. economy around $5 billion per day, disrupting the transport of food, retail goods, and other products at major ports such as New York, Baltimore, and Houston.
