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US dockworkers suspended their strike at East and Gulf Coast ports after the International Longshoremen’s Association and the United States Maritime Alliance reached a tentative agreement on wages
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Both sides tentatively agreed to a 62% wage hike spread over six years
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The union was seeking a 77% hike over six years, while the Alliance offered close to 50% in increases
US dockworkers suspended their strike at East and Gulf Coast ports after the International Longshoremen’s Association (ILA) and the United States Maritime Alliance reached a tentative agreement on wages.
The two sides agreed to extend the current contract until January 15 next year. They will return to the bargaining table to negotiate “all other outstanding issues”, such as the union’s demand of a ban on all automation at the ports.
Both sides tentatively agreed to a 62% wage hike spread over six years.
“Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” said a joint statement by the ILA and the USMX.
The backlog of vessels waiting offshore is expected to take some days to clear.
ILA members walked out on Tuesday at 14 major ports along the east and Gulf coasts, halting container traffic from Maine to Texas, the first such shutdown since 1977.
The union was seeking a 77% hike over six years, while the Alliance offered close to 50% in increases.
Reacting to the quick settlement, the Retailers Industry Leaders Association said, “Without the specter of disruption looking, the US economy can continue on its path for growth and retailers can focus on delivering for consumers.”
More than $2 billion worth of goods usually passes through the affected ports daily, from chemicals and clothing to liquor and bananas.
The affected ports from Boston to Houston usually handle more than half of all cargo containers entering the US, roughly a million a month.
Despite calls from multiple quarters, the White House refused to intervene, even as it warned of widespread harm to supply chains as well as the economy in general if the strike was allowed to continue.
President Joe Biden had vowed to allow the collective bargaining process to play out. Under federal law, the president can call for an 80-day cooling off period if the nation’s safety is at risk.
But in a statement on Thursday evening, US President Joe Biden said the agreement “represents critical progress toward a strong contract”.
He congratulated dockworkers from the ILA who, he said, “deserve a strong contract after sacrificing so much to keep our ports open during the pandemic.”
“And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table.”
The US president emphasized the need for ports to be open to “ensure the availability of critical supplies” for those hit by Hurricane Helene, which left more than 200 people dead in the US south-east.
