MichAuto Statement on the International Longshoremen Association Strike Resolution

MichAuto Statement on the International Longshoremen Association Strike Resolution

October 4, 2024

Today, MichAuto released the following statement on the International Longshoremen Association Strike.

"MichAuto commends the tentative agreement and swift resolution of the dockworkers' strike. This tentative agreement reflects a commitment to fair negotiations, provides time to make that happen, and acknowledges the vital contributions made by these workers to the economy. MichAuto appreciates the dedication of all parties involved, including the deliberative work done by the White House, to ensure the continued smooth operation of our ports, supply chains, and the well-being of the dockworkers."

- Glenn Stevens Jr., Executive Director, MichAuto; Vice President, Automotive and Mobility Initiatives, Detroit Regional Chamber

Learn more about the swift resolution in The Detroit News article below.

The Detroit News
Oct. 3, 2024

The union representing 45,000 striking U.S. dockworkers at East and Gulf coast ports reached a deal Thursday to suspend a three-day strike until Jan. 15 to provide time to negotiate a new contract.

The union, the International Longshoremen's Association, is to resume working immediately. The union and the U.S. Maritime Alliance, which represents ports and shipping companies, also reached a tentative agreement on wage increases, but no details were given, according to a joint statement from the ports and the union Thursday night.

A person briefed on the agreement said the ports raised their wage offer from about 50% over six years to 62%. The person didn't want to be identified because the agreement is tentative. Any wage increase would have to be approved by union members as part of the ratification of a final contract.

The union went on strike early Tuesday after its contract expired in a dispute over pay and the automation of tasks at 36 ports stretching from Maine to Texas. The strike came at the peak of the holiday shopping season at the ports, which handle about half the cargo from ships coming into and out of the United States.

"With the grace of God, and the goodwill of neighbors, it's gonna hold," President Joe Biden told reporters Thursday night of the agreement.

The union's membership won't need to vote on the temporary suspension of the strike. Until Jan. 15, the workers will be covered under the old contract, which expired on Sept. 30.

The union has been demanding a complete ban on the use of automation at the ports, which they see as a threat to their jobs. Both sides also have been apart on the issues of pension contributions and the distribution of royalties paid on containers that are moved by workers.

Just before the strike had begun, the Maritime Alliance said both sides had moved off their original wage offers, a tentative sign of progress.

The walkout raised the risk of shortages of goods on store shelves if it lasted more than a few weeks. Most retailers, though, had stocked up or shipped items early in anticipation of the dockworkers' strike.

But those fears of supply shortages triggered by this week's dockworkers strike at East Coast ports already led to some panic-buying of paper products and bottled water in Metro Detroit, leaving gaps on grocery store shelves reminiscent of the early days of the pandemic.

At the Costco on Middlebelt Road in Livonia, staff members said Thursday afternoon that the store was out of toilet paper and nearing the end of its bottled water supply. Customers could be seen streaming out of the store pushing carts loaded with toilet tissue, paper towels and cases of water.

"Even on the weekend, it's not really crowded like this. This is nuts," said Joe Mulligan, 62, of Garden City as he stood in the store's busy parking lot. "This is like Christmas or something, and it's never on a Thursday. I thought I would be missing the crowd coming today but I was wrong.

"I got some friends who texted me (and) said they'd be stocking up on their toilet paper because of the strike with the longshoreman, and I thought, 'that's silly,' but clearly lots of people are doing it," he said.

Anthony Witcher, 36, of Detroit said he stopped at Costco to do his regular shopping for household supplies - paper towels, toilet paper, water, baby wipes and diapers - and was stunned by the scene inside the store.

"I didn't really think nothing until I went in there and seen the line," he said. "I feel like I should've gotten a flatbed and got something extra, the way everybody's acting. I think it's getting blown out of proportion."

At the Kroger Fresh Fare on Grosse Ile, the shelves holding supplies of paper towels and toilet tissue were mostly empty Thursday morning. A sign informed customers they could buy no more than six packages of the paper products.

Jeff Smith, an economics professor at Virginia Commonwealth University who focuses on supply chain management and analytics, warned amid the strike that shortages of bananas and other perishable foods grown outside of the United States could occur by week's end.

"The things that are coming in, especially in the East Coast, that will probably impact people most and most quickly, is food base. It's the stuff that we get shipped from South America, from Europe," Smith said. "It's going to be more seafood oriented, it's going to be specific types of produce that we don't produce in the United States.

"Because those things are perishable, that's what's going to hit home first because those are very time-sensitive, so we have to have those on ships, planned, delivered so they can get distributed out to grocery stores."

Smith estimated it could be about seven to 10 days for the supply chain to return to normal.

"They know how to make this time up," he said.

RELATED: MichAuto: Economic Impact of the International Longshoremen Association Strike

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