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wages
'Cruel, Unnecessary, and Irresponsible': Trump Admin to Resume Garnishing Wages of Student Borrowers
One group noted "the irony of a billionaire being in charge of collecting pennies from debtors."
Dec 23, 2025
The US Education Department confirmed Monday that, starting next month, it will resume seizing the pay of student loan borrowers in default as the Trump administration wages a broader war on debt relief and cancellation efforts.
The department, led by billionaire Linda McMahon—who is working to gut the agency from the inside—told the Washington Post that "it will notify about 1,000 defaulted borrowers of plans to withhold a portion of their wages to pay down their past-due debt," beginning the week of January 7, 2026.
"After that, the department said, notices will be sent to larger numbers of borrowers each month," the Post reported. "There were about 5.3 million borrowers who had not made a payment on their federal student loans for at least 360 days as of June 30, according to the latest available data from the Education Department. Many of them were in default before the federal government stopped collecting defaulted loans because of the pandemic nearly six years ago."
Persis Yu, deputy executive director and managing counsel of the advocacy group Protect Borrowers, said in a statement Tuesday that "at a time when families across the country are struggling with stagnant wages and an affordability crisis, this administration's decision to garnish wages from defaulted student loan borrowers is cruel, unnecessary, and irresponsible."
"As millions of borrowers sit on the precipice of default, this administration is using its self-inflicted limited resources to seize borrowers' wages instead of defending borrowers' right to affordable payments," said Yu. "There are still nearly a million unprocessed Income-Driven Repayment applications, and this administration has admitted to denying en masse borrowers who applied and requested the US Department of Education’s help in accessing the most affordable payment option."
“Finally, during the last Trump administration, hundreds of thousands had their wages improperly taken at the peak of the pandemic because the US Department of Education was unable to control this tool," Yu added. "It is irresponsible to turn on a debt collection tool that the administration cannot turn off."
In May, the Trump administration ended a pause on student loan repayments that had been in place since the onset of the Covid-19 pandemic in 2020.
The administration has also attacked student debt relief efforts launched under former President Joe Biden. Earlier this month, the Trump Education Department cut a deal to effectively end the Saving on a Valuable Education (SAVE) plan, jacking up monthly payments for millions of borrowers enrolled in the Biden-era program.
"While millions of student loan borrowers struggle amidst the worsening affordability crisis—as the rising costs of groceries, utilities and healthcare continue to bury families in debt—billionaire Education Secretary Linda McMahon chose to strike a backroom deal with a right-wing state attorney general and strip borrowers of the most affordable repayment plan that would help millions to stay on track with their loans while keeping a roof over their head," Yu said in a statement after the deal was announced.
"The real story here," Yu added, "is the unrelenting, right-wing push to jack up costs on working people with student debt."
"The federal government also wields vast extrajudicial powers to collect student debt, including garnishing wages and seizing Social Security payments."
The Education Department is legally allowed to withhold up to 15% of a borrower's after-tax income to pay down defaulted debt. As the Post noted, the Trump administration has already resumed seizing tax refunds and Social Security benefits student loan borrowers in default.
The Debt Collective, the first debtors' union in the US, noted "the irony of a billionaire being in charge of collecting pennies from debtors."
"The Department of Education pushes debtors toward payment to get out of default," the group added. "They don’t want you to know that you have other options. These include traditional repayment options, nonpayment options, and lesser-known options."
The Trump administration's decision to resume garnishing borrowers' wages comes as advocates are warning of a "default cliff" as borrowers struggle to afford basic necessities, leaving them unable to keep up with loan repayments. A Data for Progress survey released earlier this month found that more than 40% of borrowers report making tradeoffs between covering basic needs and staying current on student loan debt payments."
"Student loan default comes with severe and punitive consequences," Michele Zampini, associate vice president of federal policy and advocacy at the Institute for College Access and Success, wrote in a blog post earlier this month.
"In addition to ongoing credit score damage and hefty collection fees, the federal government also wields vast extrajudicial powers to collect student debt, including garnishing wages and seizing Social Security payments and tax refunds that are targeted to households with very low incomes, including the Child Tax Credit and the Earned Income Tax Credit," Zampini added. "These seizures compound financial hardship for those who can least afford it."
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'Not a Pretty Picture,' Expert Says of Trump Economy as Job Growth Grinds to a Halt
"It seems to me like we are looking at a labor market with near-zero labor force growth and near-zero real wage growth," wrote economist Dean Baker. "This means that real labor income in the economy is essentially flat."
Nov 12, 2025
Even without the benefit of recent federal jobs data, which the Trump administration has withheld amid the government shutdown, a prominent US economist argued Wednesday that it's clear the labor market under Donald Trump's leadership is increasingly grim.
Citing private figures that have been used to fill the void left by two consecutive missed jobs reports from the federal government, Dean Baker of the Center for Economic and Policy Research argued that "we can infer" weak job growth in September and suggested Trump or his aides "likely reviewed the September data and made a decision not to release it."
More broadly, Baker wrote, the payroll firm ADP "shows average private sector job growth of just 10,000 a month for the three months from July to October. Since this excludes the government sector, which likely shed jobs over this period due to federal layoffs (even pre-shutdown), the ADP data imply essentially zero job growth over this period."
"The other part of the story is that wage growth also seems to have slowed especially for workers at the bottom end of the wage distribution," Baker added. "It looks to me like we are looking at a labor market with near-zero labor force growth and near-zero real wage growth. This means that real labor income in the economy is essentially flat."
"That is not a pretty picture from the standpoint of the bulk of the population, and it does not describe a very stable path of economic growth," he continued. "When the AI bubble bursts, things might get really ugly really fast."
Baker's assessment came as CNN reported that President Donald Trump considered "traveling the country to give economy-focused speeches" as consumer sentiment craters, tariffs drive up prices, millions face skyrocketing health insurance premiums, and people across the country reel from the administration's assault on safety net programs.
Publicly, Trump has dismissed the notion that people are struggling economically under his administration, calling polling to that effect "fake."
"The economy's the strongest it's ever been," Trump falsely declared during a recent Fox News interview.
On Tuesday, the White House was widely mocked for citing extremely limited data from the food delivery company DoorDash to proclaim that Trump's agenda is "delivering real results for American families."
They’ve laid off so many people that the government is now getting its economic data from DoorDash.
[image or embed]
— Dare Obasanjo (@carnage4life.bsky.social) Nov 11, 2025 at 8:09 PM
Economist Paul Krugman wrote in a blog post on Wednesday that Trump is beginning to face "backlash against his attempts to gaslight the public about the true state of the economy," pointing to "the blowout Democratic victories in last week’s elections" as just part of that backlash.
"Once again, these attempts aren’t about putting a positive spin on the data. They’re just flat-out lies," Krugman wrote. "And Democrats should hammer those lies as proof not just that Trump is utterly dishonest, but that he’s completely out of touch with the reality of American life."
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As White House Touts 'Economic Boom,' Americans Say They're Barely Scraping By
Amid intensifying tariffs, just 30% of Americans say they can afford the cost of living, according to a poll from Data for Progress.
Jul 25, 2025
The White House says the U.S. is in the midst of an "economic boom" under President Donald Trump. But voters aren't feeling it in their wallets.
Polling released by Gallup Thursday found the president's approval rating at just 37%, the lowest point of his second term so far, with an all-time low approval rating of 29% among independents.
This precipitous decline has been helped along by sagging approval on the economy, which has historically been the issue where he gets the most support. After a high of 42% in February, approval for his handling of the economy is likewise down to just 37%.
An uptick in inflation seen over the past month has exacerbated the cost of living crisis Trump promised to abate on the campaign trail.
A poll released Friday by Data for Progress found that, "Only 30% of likely voters report having enough income to be able to comfortably provide for their household's needs, while a plurality of voters (43%) say they have enough income but money is tight, and 20% say they do not make enough to provide for all household members' needs."
(Graphic: Data for Progress)
"As his approval tanks, President Trump has finally lost voters on the one issue where they've historically trusted him: the economy," said Lindsay Owens, the executive director of the Groundwork Collaborative. "Not only has Trump shirked his promise to lower prices, he's made the situation substantially worse as his tax and tariff policies have landed a double blow to household budgets."
According to data from Indeed, cited by Forbes, 43% of Americans have seen their wages lagging behind the cost of living over the past year. The jobs feeling the worst crunch are those "at the low-to-middle end of the pay spectrum."
Trump has imposed the highest tariffs on imported goods since the Great Depression. After months of relative quiet, they began to make their impact felt this past month, with consumer prices up 2.7% from the previous year, compared with just 2.4% in May.
While rising rent costs were the top driver of inflation in June, prices for clothing, toys, and consumer appliances all rose, as did food and energy.
The president was elected on promises to tackle the cost of living. But now 70% say that he is not focused enough on lowering prices, according to polling released Sunday by CBS News. Meanwhile, 61% say Trump is focusing too much on his tariff policy, which remains broadly unpopular.
Yale's Budget Lab estimates that it would cost the average household $2,770 worth of disposable income per year if tariffs stayed at their current rate indefinitely, with the worst impact—especially in the short term—on the poorest Americans.
(Graphic: Yale Budget Lab)
But they are set to grow more intense beginning on August 1, when Trump has said he'll roll out new levies on imports from some of America's top trading partners, including Canada, the European Union, Mexico, Brazil, and South Korea.
According to economists who spoke with Vox, the worst effects are likely yet to come. Preston Caldwell, chief U.S. economist for Morningstar, said inflation would likely peak in 2026 rather than 2025.
"Companies have started paying tariffs on their imported goods, but as far as the goods that are being sold in stores right now, those are primarily being drawn from the inventory of goods that were brought in before the tariffs," Caldwell said. "So most companies are still not really having to recognize the loss of tariffs yet to a great degree."
"The more that it becomes clear that tariffs are here for at least the foreseeable future," he continued, "the more that they are going to have to eventually adjust to this new reality, which will entail increasing their prices."
Owens said that will likely translate to even fiercer backlash against Trump.
"Working families," she said, "know exactly who to blame as they pay higher prices on everything from groceries and electricity bills to school supplies and appliances."
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Trump Labor Department Launches 'Barrage of Attacks' on Workers
"They're showing their true colors as an anti-worker administration," Andrew Stettner of the Century Foundation told Common Dreams.
Jul 22, 2025
In what has been described as a "barrage of attacks on workers," the U.S. Department of Labor under President Donald Trump is planning to overhaul dozens of rules that protect workers from exploitation and wage theft.
The administration announced this month that it planned to change over 60 regulations it deems "unecessary" burdens to businesses and economic growth.
According to an analysis released Tuesday by labor policy experts at the Century Foundation—senior fellows Julie Su and Rachel West and director of economy and jobs Andrew Stettner—most of the changes "reverse critical standards that ensure workers get a just day's pay and come home healthy and safe."
In one of the most sweeping changes, the department plans to reverse a 2013 rule that extended minimum wage and overtime protections to home healthcare workers.
These workers, who care for elderly and other medically frail individuals, already make less than $17 an hour on average.
Stettner told Common Dreams that the changes will "suppress wages" and allow agencies to "put the screws on workers to work 50- or 60-hour weeks."
The Trump administration is also rolling back a Biden-era rule that banned bosses from paying subminimum wages to disabled employees.
This discriminatory practice has been on the wane due to state-level bans in 15 states. But in the absence of a federal ban, nearly 40,000 employees—most of whom have intellectual disabilities—still received less than the federal minimum wage as of 2024.
The Century Foundation report says that by ending the rule, the Trump administration would be once again "relegating workers with disabilities to jobs that pay as little as pennies per hour."
The department is also taking a hatchet to workers' rights and safety. Another major change it proposed would do away with protections for seasonal migrant farmworkers under the H-2A visa program who raise complaints about wage and hour violations.
It was commonplace for farm owners to take advantage of these seasonal employees, whose legal status was tied to their work, and who therefore risked deportation if they lost their jobs.
Cases of exploitation, however, declined to an all-time low after the Biden administration introduced the rule, which banned employers from firing, disciplining, or otherwise retaliating against workers who attempted to participate in collective bargaining.
"These reforms protected the rights of farmworkers in the H-2A program to speak out individually and collectively against mistreatment and prevented employers from arbitrarily firing them from their jobs," the report says.
The department also proposed weakening the Occupational Safety and Health Administration's (OSHA) general duty clause, which allows businesses to be punished for putting their employees in dangerous situations. The proposed change would exempt many jobs that are deemed "inherently risky" from protection.
The administration described it as a way to prevent OSHA from cracking down on workplace injuries among athletes and stuntmen.
However, Stettner suggested that the broad language could allow the administration to go much further in defining what is considered "inherently risky." The report notes that the administration is "crowdsourcing" suggestions from employers about what other occupations to exempt.
"The employer community, they're jumping onto this," Stettner said. "They're telling their members to write in to the Department of Labor about other inherently dangerous occupations they should except from the general duty clause."
The authors pointed out that the administration has previously rolled back restrictions meant to protect workers from heat-related stress on the job, which results in more than 600 deaths and over 25,000 injuries each year.
As the administration pushes to expand coal mining, it is also weakening protections for the miners themselves. After laying off most of the employees at OSHA's research arm—which monitors cases of black lung disease—earlier this year, it is now weakening safety requirements to prevent roof falls, mine explosions, and exposure to toxic silica.
"The DOL's role should be to protect the most vulnerable workers: farmworkers, people with disabilities, people that have suffered discrimination," Stettner said. "They're showing their true colors as an anti-worker administration."
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'We're at the End of Our Rope': Union NJ Transit Workers Go on Strike
"They have money for penthouse views and pet projects, just not for their frontline workers. Enough is enough," said the national president of the Brotherhood of Locomotive Engineers and Trainmen.
May 16, 2025
Hundreds of engineers and trainees who work for New Jersey's public transportation system went on strike early Friday, according to the union that represents the NJ Transit workers, the Brotherhood of Locomotive Engineers and Trainmen.
The strike, the first by NJ Transit workers since 1983, comes as contract negotiations have dragged out for over five years, according to the New Jersey Monitor. Wages are the key sticking point between the unionized workers and NJ Transit, which is state-owned.
The strike is poised to disrupt the commutes of some 100,000 daily rail riders, many of whom are traveling to and from Manhattan.
Thomas Haas, general chairman for the NJ Transit engineers union, said on Wednesday night before the NJ Transit board that "we, the locomotive engineers of NJ Transit are asking only for a fair and competitive wage," according to CNN.
"The last thing we want to see is that [service] to be interrupted. But we're at the end of our rope," Haas said.
Brotherhood of Locomotive Engineers and Trainmen (BLET) officials reached a tentative deal with NJ Transit in March, but the union's some 450 rank-and-file workers voted down the agreement, saying that it didn't include a large enough pay increase, according to Gothamist. The rejected deal teed up Friday's strike.
The rejected deal from November would have raised wages, but the union has said its members are seeking wage parity with those who work for nearby commuter rails, like the Long Island Rail Road.
"NJ Transit has a half-billion dollars for a swanky new headquarters and $53 million for decorating the interior of that unnecessary building. They gave away $20 million in revenue during a fare holiday last year," said BLET national president Mark Wallace in a statement on Thursday. "They have money for penthouse views and pet projects, just not for their frontline workers. Enough is enough. We will stay out until our members receive the fair pay that they deserve."
The union announced that picket locations have been set up, including at New York City's Penn Station.
"I have always said that any deal we reach would have to be fair to our engineers and fiscally responsible without burdening our riders or the taxpayers of New Jersey," said NJ Transit president and CEO Kris Kolluri on Thursday.
"This strike will upend the lives of hundreds of thousands of New Jerseyans," said Democratic New Jersey Gov. Phil Murphy. "The path to a new contract will be paved at the negotiating table, not the picket line."
Railroads are subject to the Railway Labor Act, which means that even if members of a union reject a deal, the federal government can force both sides to accept a deal and order workers back to work. This happened in 2022, when then-President Joe Biden signed legislation averting a rail strike and forcing freight rail workers to accept a deal that multiple unions had rejected.
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Starbucks Strike Expands to 300+ US Stores as Workers Demand a Just Contract
"Workers shouldn't struggle to pay their bills while working for one of the biggest fast-food corporations in the world," said Starbucks Workers United.
Dec 24, 2024
Starbucks workers at more than 300 locations across the United States, from Atlanta to Boston to Los Angeles, are expected to walk off the job Tuesday to pressure the coffee giant to come to the bargaining table with a just contract offer that includes a living wage, benefit improvements, and fair scheduling.
As the Christmas Eve strikes kicked off, Starbucks Workers United (SBWU) wrote in a social media post that management's latest economic offer to unionized workers, which included no immediate wage increases, indicated that the $100 billion corporation "seems to prefer investing in CEO Brian Niccol's $113 million compensation package."
"SBWU is demanding the company present us with a serious economic offer at the bargaining table," the group wrote. "Workers shouldn't struggle to pay their bills while working for one of the biggest fast-food corporations in the world."
"If Starbucks wants to put their money where their mouth is," SBWU added, "it's time to invest in WORKERS the way they're investing in rich CEOs. We demand Starbucks bargain a fair contract!"
Over 5,000 Starbucks workers have walked off the job so far as part of the latest strikes, according to one organizer.
Starbucks employees and supporters rally outside of a Starbucks store on December 23, 2024 in New York City. (Photo: Adam Gray/Getty Images)
Since the groundbreaking victory in Buffalo, New York just over three years ago, the Starbucks union movement has expanded to more than 500 stores across the U.S., with over 11,000 baristas organizing in the face of aggressive and often illegal opposition from the company's management.
Unionized Starbucks workers are demanding a base wage of at least $20 an hour for baristas, with an elevated wage floor in high-cost-of-living areas and annual inflation adjustments.
They're also calling for healthcare benefit improvements, protections against union-busting, and "a fair process to obtain consistent schedules."
SBWU said Tuesday that the Christmas Eve walkouts mark the largest-ever unfair labor practice strike at Starbucks, and the organization urged customers and allies to boycott the company for the duration of the actions.
"Spread the word—and friends don't let friends cross the picket line!" SBWU wrote on social media.
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'Join a Union': Boeing Workers Ratify Contract With Over 43% Wage Hike
"Working people know what it’s like when a company overreaches and takes away more than is fair," said union leaders.
Nov 05, 2024
After seven weeks on strike, Boeing workers voted Monday to ratify a new contract that includes a 43.65% wage increase over four years—a significant improvement over the 25% increase that the aerospace giant offered in September.
Members of the International Association of Machinists and Aerospace Workers (IAM) Districts 751 and W24 approved the contract in a 59%-41% vote around two weeks after rejecting a tentative deal that called for a 35% pay increase over a four-year period.
The contract approved by workers also includes a $12,000 ratification bonus, improvements to retirement and healthcare benefits, and improved overtime rules.
"Strikes work," labor journalist Kim Kelly wrote in response to the contract vote.
Jon Holden and Brandon Bryant, respectively the presidents of IAM District 751 and W24, said in a joint statement that "working people know what it’s like when a company overreaches and takes away more than is fair."
"Through this strike and the resulting victory, frontline workers at Boeing have done their part to begin rebalancing the scales in favor of the middle class—and in doing so, we hope to inspire other workers in our industry and beyond to continue standing up for justice at work," said Holden and Bryant. "Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace."
"Livable wages and benefits that can support a family are essential—not optional—and this strike underscored that reality," they added. "This contract will have a positive and generational impact on the lives of workers at Boeing and their families. We hope these gains inspire other workers to organize and join a union. Frontline Boeing workers have used their voices, their collective power, and their solidarity to do what is right, to stand up for what is fair—and to win."
IAM's international president, Brian Bryant, called the contract "a new standard in the aerospace industry—one that sends a clear statement that aerospace jobs must be middle-class careers in which workers can thrive."
"Workers in the aerospace industry, led by the IAM—the most powerful aerospace union in the world—will not settle for anything less than the respect and family-sustaining wages and benefits they need and deserve," said Bryant. "This agreement reflects the positive results of workers sticking together, participating in workplace democracy, and demonstrating solidarity with each other and with the community during a necessary and effective strike."
Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus and an outspoken supporter of the Boeing strike, congratulated IAM members on Monday "for winning a hard-fought victory."
"I also congratulate Machinists President Jon Holden as well as Boeing CEO Kelly Ortberg for working to reach a deal that ensures Boeing will continue to build quality planes that contribute to our country's security and mobility while valuing and respecting the fact that there is no Boeing without the IAM," Jayapal said in a statement.
As did the union leadership in their remarks, Jayapal specifically thanked Acting Labor Secretary Julie Su of the Biden administration for helping secure the deal, citing "skilled leadership" that brought "both parties to the table and to an agreement."
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Instead of Blaming Policymakers for High Prices, Thank Them for High Wages
The inflation of recent years was—sadly—inevitable; the fast wage growth over the past four years was made possible entirely by proactive policy decisions.
Oct 10, 2024
Last week, the Bureau of Labor Statistics reported that 254,000 jobs were created in September and that job growth in both July and August was stronger than initially reported. This report was just the latest confirmation of the extraordinary strength of the U.S. labor market in recent years. This strength is what led to real (inflation-adjusted) incomes recovering far faster after the Covid-19 recession than they have following previous recessions. Even better, real wage growth has been by far the fastest at the low end of the wage scale, which has reduced inequality.
This labor market strength was also 100% a policy choice. Unlike previous business cycles, policymakers passed fiscal relief and recovery measures at the scale of the shock, and it proved that low unemployment could be restored very quickly after recessions so long as this policy lever was pulled with enough force.
Public appreciation of this accomplishment has been blunted by the outbreak of inflation in 2021 and 2022. While inflation has been steadily reined in since early 2023, the public’s perception of the economy remains soured by it. In a strict economic sense, the public mood seems odd: If real wages are higher and more equal now than at equivalent points in previous recoveries, why isn’t the public mood much better?
Policymakers who chose not to target significantly higher unemployment rates to tamp down inflation made the correct judgement that inflation was mostly driven by shocks that would fade even with labor markets remaining strong.
One reason put forward as to why the public dislikes inflation even if real wages and incomes are rising is pretty persuasive: Workers see wage growth as something they individually achieved while inflation was a policy mistake inflicted on them. This outlook is understandable, but it’s totally wrong.
Policy choices influence wage growth every bit as much as inflation—and sometimes more. When wage growth is slow, policymakers deserve blame—not workers. When wage growth is strong, however, it is because policy has done something right, not because workers spontaneously decided to become more productive or harder-working.
It is deeply damaging to U.S. policy debates that this is not more broadly appreciated.
For decades when wage growth for the vast majority of workers was anemic, these workers were often told it was because they weren’t skilled enough to keep pace with the demands of technological changes and globalization. This was false. It was intentional policy decisions that suppressed wage growth in those decades, policy choices meant to redistribute income upwards toward capital-owners and corporate managers.
In the past four years, workers have seen fast wage growth not because they are working more productively or harder—U.S. workers have always been the most productive in the world and have always worked hard. What changed was that policymakers decided to target a rapid return to sustained low unemployment, keeping unemployment below 4.5% for the longest stretch of time since the Vietnam War. In 2021, these tight labor markets were also accompanied by unprecedently large and expansive unemployment insurance benefits and cash transfers to households. These public supports gave workers more breathing room than ever before to be choosy about which jobs they took. These policy choices are why wages grew so fast so early in the pandemic recovery.
In fact, over the pandemic recovery, the policy fingerprints on fast wage growth are far clearer than those on too-high inflation. Inflation after 2019 was driven by two global shocks—the pandemic and the Russian invasion of Ukraine. Inflation accelerated everywhere in the advanced world, and the precise amount by country was wholly unrelated to policy choices they made.
The most common critique of policymakers is that the Federal Reserve should have engineered softer labor markets and tolerated higher unemployment to break inflation’s momentum. This thinking is wrong. There is a long and extremely well-developed literature nearly unanimously showing that higher unemployment has larger and more reliable effects in reducing wage growth than it does in reducing inflation.
Policymakers who chose not to target significantly higher unemployment rates to tamp down inflation made the correct judgement that inflation was mostly driven by shocks that would fade even with labor markets remaining strong. That is, they chose to not sacrifice wage growth (and the jobs of millions of workers) to pull down inflation.
In short, the inflation of recent years was—sadly—inevitable. The fast wage growth over the past four years was made possible entirely by proactive policy decisions. Getting this straight is crucial for getting better policy going forward. And it should make the public much more appreciative about the macroeconomic choices made since 2020.
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Dockworkers Suspend Strike After Winning Tentative Deal With 62% Wage Boost
"When we STRIKE, we WIN!" said the AFL-CIO, the nation's largest federation of unions.
Oct 04, 2024
The union representing East and Gulf Coast dockworkers suspended its strike on Thursday after reaching a tentative agreement with shipping giants that reportedly includes a 62% wage boost over six years.
The International Longshoremen's Association (ILA) said in a joint statement with the United States Maritime Alliance (USMX) that the union would suspend its strike until January 15 so the two sides can "return to the bargaining table to negotiate all other outstanding issues."
"Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume," the statement added.
The tentative deal followed three days on the picket line during which dockworkers—who are essential to the functioning of the U.S. economy—cast their fight as a critical struggle against multinational corporations that raked in huge profits during the Covid-19 pandemic and enriched their investors as wages failed to keep pace with inflation.
“These companies... they don't give a fuck about us," Harold Daggett, the ILA's president, said from a picket line in New Jersey earlier this week. "Well, we're gonna show them they're gonna have to give a fuck about us. Because nothing's gonna move without us."
According to one estimate, the dozens of ports affected by the strike handle a combined 25% of the United States' international trade.
The Associated Press reported Thursday that the two sides reached a tentative deal after "the ports sweetened their wage offer from about 50% over six years to 62%."
The union originally sought a 77% raise, but in recent days Daggett said the ILA would pursue a 61.5% raise for workers over the course of a new contract. Daggett rejected the shipping industry's previous wage offers as "insulting."
"Congratulations to ILA members for making huge strides and thank you to the millions of union members who stood in solidarity with them."
Under the contract that expired earlier this week, starting pay for dockworkers was $20 an hour.
Any final agreement must be ratified by union members, who also demanded protections from automation and other benefit improvements. Reuters reported that automation is among the "key issues that remain unresolved."
"When we STRIKE, we WIN!" the AFL-CIO, the nation's largest federation of unions, wrote on social media late Thursday. "Congratulations to ILA members for making huge strides and thank you to the millions of union members who stood in solidarity with them."
U.S. Sen. Bernie Sanders (I-Vt.) also congratulated "the 50,000 port workers who went on strike against the outrageous corporate greed of the shipping industry and won a historic increase in wages."
"Billionaires in the shipping industry must not be allowed to get even richer by replacing port workers with robots," the senator wrote.
Sanders added that Acting Labor Secretary Julie Su "did a great job negotiating a tentative agreement to increase the wages of port workers by 62% over six years."
The Biden administration declined to intervene on the side of industry to halt the strike, and President Joe Biden issued a statement earlier this week noting that "ocean carriers have made record profits since the pandemic and in some cases profits grew in excess of 800% compared to their profits prior to the pandemic."
"Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates," said Biden. "It's only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well."
In a statement following news of the tentative deal, Biden said that "today's tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract."
"I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic," the president said. "And I applaud the port operators and carriers who are members of the U.S. Maritime Alliance for working hard and putting a strong offer on the table."
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'When We Fight, We Win': Amazon Boosts Pay as Workers Launch Bid for $25 an Hour
"Today shows that Amazon workers are united and stronger than ever in our demands for higher pay," said one warehouse worker and organizer.
Sep 18, 2024
As Amazon workers across the United States launched a campaign demanding at least $25 an hour, the e-commerce giant announced Wednesday that it is raising hourly pay for its warehouse workers and drivers.
In what Amazon vice president of worldwide operations Udit Madan called the company's "biggest-ever investment in pay and benefits," the average starting pay for U.S. fulfillment and transportation workers will rise starting this month.
"Members of our front-line team will be getting at least an additional $1.50/hour starting this month, which will bring their average base wage to more than $22/hour and average total compensation to more than $29/hour when you include the value of their elected benefits," such as healthcare, said Madan, who added that the workers will also receive free Amazon Prime subscriptions.
While the Amazon workers who launched the drive for $25 welcomed the announcement, they say they deserve more.
"I've lost out on thousands of dollars of income. I haven't gotten a paycheck since my short-term disability—which only covered 60% of my regular pay—ended in January," said Christine, a worker at Amazon's STL8 fulfillment center in Missouri and longtime member of the STL8 Organizing Committee.
"I'm awaiting approval for long-term disability, which I applied for back in January," explained Christine, who was injured on the job. "I've maxed out my credit cards and drained my 401(k). I'm on food stamps. I just got approved for Medicaid. At one point I started a GoFundMe just to make rent. I've never been in the position of having to ask for money, but the alternative was homelessness. When you're forced into that position, you do what it takes to survive."
"Today shows that Amazon workers are united and stronger than ever in our demands for higher pay," she added. "With over 800 worker signatures on our petition and new workers joining us from across the region, together we will win the $25 an hour that we all deserve."
According to the campaign:
Research suggests working families need at least $25 to make it by. In Missouri, for example, a livable wage for a family of four is at least $25; in New York, the livable wage is even higher, at $39. However, a majority of Amazon warehouse workers reported earning wages between $16 and $20—before Amazon increased starting pay to $17 in September 2023. Amazon itself reports an average pay of $20.50.
"The $1 raise that Amazon gave workers last year was shameful. After accounting for inflation, it wasn't even a raise," lamented Irene Tung, senior researcher and policy analyst at the National Employment Law Project. "Our research has shown that Amazon tends to locate its warehouses in high earnings counties around the country, but lags behind other warehouse employers in pay—even though it can afford to pay workers much more."
Advocates point to Amazon's $30.4 billion 2023 profits as proof that the company can afford to pay its workers more.
"Raising pay by 25% would bring Amazon workers much closer to a middle-income standard of earnings," Tung said. "Given Amazon's size and the enormity of its wealth, it is not far-fetched to ask why this company has thus far failed at creating middle-income jobs for the hundreds of thousands of U.S. workers that power its operations."
Beth Gutelius—the author of Handling Hardship: Data on Economic Insecurity Among Amazon Warehouse Workers—said in a statement that "if warehouse wages had kept pace with inflation, workers would be earning $25.66 an hour—so workers are simply asking Amazon to bring wages in line with the cost of living, which as we know has risen sharply."
"Doing so would help ensure that workers are able to meet their basic needs without relying on public assistance," she added.
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