The recent historic strike by dockworkers in the United States has been suspended following a tentative agreement that includes significant wage increases. The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) announced that all current job actions would cease immediately and work covered by the Master Contract would resume.
Under the tentative agreement, workers’ wages would rise by 62% over the six-year contract period, an increase from the shipping industry’s earlier offer of a 50% raise. The union had initially sought a 77% wage increase. If the agreement is ratified, the hourly wage for top dockworkers will reach $63, up from $39 in the previous contract.
The Maritime Alliance revised its offer due to public pressure from the Biden administration, which encouraged a proposal that provided higher wages for workers. However, the agreement does not yet resolve ongoing disputes between the union and shipping companies regarding the use of automated machinery, which will be a critical focus for negotiations leading up to January 15.
President Joe Biden expressed his support for the agreement, praising the ILA and USMX for their collaboration to reopen East Coast and Gulf ports. He acknowledged the union workers, shipping carriers, and port operators for their efforts to ensure the availability of essential supplies, particularly in light of recovery efforts from Hurricane Helene.
Earlier this week, tens of thousands of dockworkers had walked off the job, affecting numerous ports along the East and Gulf coasts. This marked the first coastwide strike by the ILA in nearly 50 years, with the union representing approximately 50,000 dockworkers. The ILA’s demands included higher wages and a restriction on the use of certain automated equipment.
During the strike, President Biden called for USMX to provide a fair proposal, highlighting the profits of shipping firms and the contributions of dockworkers during the COVID-19 pandemic. In response to the strike, USMX reaffirmed its commitment to negotiate in good faith.
Experts noted that if the strike had prolonged, it could have led to increased inflation on goods and potential layoffs in the manufacturing sector due to shortages of raw materials. Historically, the last strike affecting East Coast and Gulf Coast workers in 1977 lasted seven weeks. In 2002, a West Coast port strike was resolved after 11 days when President George W. Bush invoked the Taft-Hartley Act to end the disruption.