A significant strike by dockworkers in the United States has been halted following a tentative agreement on wages, as announced by the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). The strike’s suspension means that all job actions will cease immediately, and work under the Master Contract will resume.
The provisional agreement proposes a 62% raise in wages over the duration of the six-year contract, according to sources familiar with the matter. This figure marks an increase from a previous offer of a 50% wage increase from the shipping industry group, while the union had originally sought a 77% increase.
If finalized, the new contract would elevate the hourly wage for top dockworkers from $39 to $63 by its conclusion. The Maritime Alliance’s decision to improve its offer came after mounting public pressure from the Biden administration for better wages in the sector.
However, the tentative deal does not address ongoing disagreements between the union and shipping companies concerning the implementation of automated machinery, which is expected to be a focal point in future negotiations set to continue until January 15.
President Joe Biden praised the collaborative efforts of the ILA and USMX in reaching this agreement, emphasizing its significance in reopening East Coast and Gulf ports. He expressed gratitude towards union workers, carriers, and port operators for their cooperation in ensuring the flow of essential supplies, particularly in the aftermath of Hurricane Helene.
The strike commenced early Tuesday morning, with tens of thousands of dockworkers across the East and Gulf coasts participating, resulting in substantial disruptions at numerous ports. This marked the ILA’s first coastwide strike in nearly five decades, with members advocating for higher wages and restrictions on certain automated equipment.
As the strike unfolded, President Biden urged USMX to present an equitable offer, underscoring the shipping firms’ profits in recent years and the sacrifices made by dockworkers during the COVID-19 pandemic. Following the suspension of the strike, USMX committed to negotiating effectively to meet the demands of the ILA while addressing its own concerns.
Experts warned that a prolonged strike could have exacerbated inflationary pressures on goods and led to layoffs in manufacturing due to shortages of raw materials. The last significant strike by East Coast and Gulf Coast workers lasted seven weeks in 1977, while a shorter 11-day strike occurred at West Coast ports in 2002 before government intervention brought it to an end.