A historic strike by dockworkers in the United States has been suspended after a tentative agreement was reached regarding wages, as announced by the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).
In a joint statement on Thursday evening, the ILA and USMX declared that all job actions would cease immediately and work under the Master Contract would resume. The tentative agreement proposes a 62% wage increase over the six-year period of the contract, according to sources familiar with the negotiations.
This increase is a notable improvement compared to the shipping industry’s previous offer of a 50% raise and falls short of the union’s request for a 77% hike. If the agreement is finalized, the hourly wage for top dockworkers will rise to $63 per hour by the contract’s conclusion, significantly up from the $39 per hour under the expired contract.
The Maritime Alliance raised its wage offer due to public pressure from the Biden administration, which advocated for a higher wage contract. However, the agreement does not address ongoing disputes concerning the use of automated machinery, an issue that will need further negotiation before the January 15 deadline.
President Joe Biden expressed his appreciation for the collaboration between the ILA and USMX, commending them for the resumption of operations at East Coast and Gulf ports. He emphasized that the tentative agreement represents crucial progress toward establishing a robust contract. Biden also recognized the dedication of the union workers, carriers, and port operators during the strike, which was initiated by tens of thousands of dockworkers early Tuesday morning, affecting multiple ports along the East and Gulf coasts.
The ILA, representing around 50,000 dockworkers in these regions, is advocating for higher wages and restrictions on certain automated equipment usage. Prior to the agreement, the ILA had voiced concerns about inflation impacting its members due to inadequate wage increases proposed by USMX.
In light of the strike, President Biden called for a fair proposal from USMX, highlighting the substantial profits earned by shipping companies in recent years alongside the sacrifices made by dockworkers during the pandemic. During the strike, USMX reaffirmed its commitment to negotiating in good faith with the ILA.
Experts noted that a prolonged strike could have exacerbated inflation for certain goods and led to layoffs in manufacturing sectors reliant on dockworker services. The last significant strike involving East Coast and Gulf Coast workers occurred in 1977 and lasted for seven weeks, while a 2002 strike at West Coast ports was resolved in 11 days following intervention by then-President George W. Bush.