The recent historic strike by dockworkers in the United States has been suspended following a tentative agreement on wages, as announced by the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).
Effective immediately, the organizations declared that all job actions would cease and work under the Master Contract would resume. The proposed agreement details a substantial wage increase of 62% over the six-year contract period, significantly surpassing an earlier offer of 50% from the shipping industry. The union had initially aimed for a 77% pay increase.
Under the new contract terms, the hourly wage for top dockworkers would rise to $63, a notable jump from the previous $39 per hour. The increase in the offer from the Maritime Alliance came following pressure from the Biden administration to enhance the wage proposal.
However, the tentative agreement does not address ongoing disputes related to the use of automated machinery, which will become a primary focus in upcoming negotiations set to continue until January 15.
President Joe Biden praised both the ILA and USMX for their efforts in resolving the situation and reopening East Coast and Gulf ports. He highlighted the importance of the tentative agreement in securing a robust contract and expressed gratitude to all parties for their commitment to national interests and supply availability during the recovery from Hurricane Helene.
The strike began on Tuesday morning, affecting numerous ports along the East and Gulf coasts, marking the first coastwide strike by the ILA in nearly five decades. The union represents approximately 50,000 dockworkers in these regions and had aimed for increased compensation and restrictions on certain automated technologies.
Prior to the agreement, President Biden had called for fair negotiations from USMX, emphasizing the profits made by shipping firms and the contributions of dockworkers throughout the pandemic. USMX committed to good faith bargaining to address the union’s concerns.
Experts warned that a prolonged strike could have led to inflation in certain goods and potential layoffs in manufacturing sectors due to supply chain disruptions. The last significant work stoppage in the region occurred in 1977, lasting seven weeks, while a 2002 strike at West Coast ports ended after 11 days through government intervention.