The recent strike by dockworkers in the United States has been halted following a tentative agreement that addresses wage concerns. According to the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), all current job actions will cease immediately, and work under the Master Contract will resume.
The new tentative agreement proposes a staggering 62% wage increase over the six-year duration of the contract, as confirmed by sources familiar with the situation. Previously, the shipping industry had offered a 50% wage hike, while the union sought a more ambitious increase of 77%. Under the new agreement, the hourly wage for top dockworkers will rise to $63 from the previous rate of $39.
The Maritime Alliance adjusted its wage offer in response to growing public pressure from the Biden administration to secure a better deal for workers. However, key issues remain unresolved, particularly regarding the use of automated machinery, which will be a significant topic in future negotiations scheduled to continue until January 15.
President Joe Biden praised the collaboration between the ILA and USMX, stating that the tentative agreement marks vital progress toward a robust contract. He expressed gratitude to union workers and port operators for their efforts to reopen affected ports and ensure the availability of essential supplies, especially in the wake of Hurricane Helene.
Earlier in the week, tens of thousands of dockworkers had walked off their jobs, resulting in significant disruptions at ports along the East and Gulf coasts. This marked the first coastwide strike in nearly 50 years, with ILA members establishing picket lines early Tuesday morning.
The ILA represents around 50,000 dockworkers in these regions, advocating for better pay and restrictions on certain automated technologies. Union officials emphasized the need for fair compensation for their critical role in maintaining American commerce, especially in light of inflationary pressures attributed to inadequate wage offers.
As the strike unfolded, President Biden called on the USMX to present a fair proposal, highlighting the profitable status of shipping companies and the challenges faced by dockworkers during the COVID-19 pandemic. In response to the strike, USMX reaffirmed its commitment to negotiating in good faith.
Experts warned that a prolonged work stoppage could trigger inflation for various goods and lead to layoffs in manufacturing due to shortages of raw materials. Historically, strikes along the East and Gulf coasts have caused significant disruptions, with notable stoppages occurring in 1977 and 2002.