A major port strike in the United States has been suspended following a tentative agreement on wage increases reached between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). Effective immediately, all job actions are halted, and operations will resume as covered by the Master Contract.
The proposed agreement would raise workers’ salaries by 62% over the duration of the 6-year contract, bringing the hourly wage for a top dockworker to $63 by the end of the agreement, a significant jump from the previous $39 per hour. This revised offer comes in response to public pressure from the Biden administration for greater wage increases, although it is short of the union’s original demand for a 77% pay hike.
While this agreement addresses wage issues, it does not resolve ongoing discussions about the use of automated machinery, which will remain a crucial focus for negotiations leading up to January 15.
President Joe Biden praised both the ILA and USMX for their cooperation in reopening East Coast and Gulf ports. He expressed gratitude to the union workers and port operators for their efforts to ensure the availability of essential supplies, especially in light of recovery efforts for Hurricane Helene.
The strike began early Tuesday morning when tens of thousands of dockworkers walked off their jobs, affecting numerous ports along the East and Gulf coasts. The ILA’s action marked the first coastwide strike in almost 50 years, with workers advocating for better wages and restrictions on certain automated equipment.
In response to the striking workers, President Biden urged for fair negotiations from USMX, highlighting the significant profits of shipping firms and the sacrifices made by dockworkers during the COVID-19 pandemic.
Amid the strike, USMX expressed its commitment to continue bargaining in good faith to meet the ILA’s demands. Experts warned that a prolonged strike could have revived inflation for certain goods and potentially led to layoffs in manufacturing due to a shortage of raw materials. The last East Coast and Gulf Coast strike in 1977 lasted seven weeks, while a 2002 West Coast port strike concluded after 11 days following presidential intervention.