A historic port strike in the United States has been put on hold following a tentative agreement between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). The accord, announced in a joint statement on Thursday evening, focuses on wage increases.
Under the new six-year contract, dockworkers would see their wages rise by 62%, a substantial improvement from the previous offer of a 50% increase made earlier this week. The union had originally sought a 77% wage increase over the same period.
If finalized, the agreement would boost the hourly pay for top dockworkers from $39 to $63 by the contract’s conclusion. The decision to enhance the wage proposal came after increased public pressure from the Biden administration for better pay offers.
However, the tentative agreement does not resolve ongoing disputes regarding the use of automated machinery, which will remain a central topic in future negotiations until January 15.
President Joe Biden praised both the ILA and USMX for their efforts in reopening East Coast and Gulf ports and highlighted the record wage agreement as a vital step toward achieving a strong contract. He expressed gratitude to the union workers and port operators for their commitment to resuming operations, emphasizing the importance of collective bargaining in building a robust economy.
The strike initially began when tens of thousands of dockworkers walked off the job early Tuesday morning, effectively halting activities at numerous ports along the East and Gulf coasts. This marked the first coastwide strike by the ILA in nearly 50 years, as members set up picket lines across key shipping locations.
The ILA, representing 50,000 dockworkers, sought higher wages and restrictions on certain automated equipment. Amid the strike, President Biden advocated for a fair deal from USMX, pointing out the profits garnered by shipping companies in recent years and recognizing the sacrifices made by dockworkers during the COVID-19 pandemic.
USMX, for its part, reiterated its dedication to negotiating in good faith to address the ILA’s demands while voicing its own concerns.
A prolonged strike could have sparked further inflation for consumer goods and potential layoffs in manufacturing due to a lack of raw materials. The last significant strike in the region occurred in 1977 and lasted seven weeks, while a 2002 strike on the West Coast lasted 11 days before intervention from President George W. Bush.