A significant U.S. port strike has been halted following the establishment of a tentative agreement concerning wages, announced by the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).
Effective immediately, all current job actions will cease, and all work related to the Master Contract will resume as stated in a joint announcement on Thursday evening. Under the new six-year contract, workers are set to receive a 62% wage increase, as confirmed by sources to ABC News.
This new agreement marks a major enhancement from the shipping industry’s prior offer of a 50% wage increment, which was presented earlier in the week. The union had initially called for a 77% pay raise over the same period. Under the terms of the tentative deal, the hourly wage for top dockworkers is expected to reach $63, up from $39, by the contract’s conclusion.
The Maritime Alliance’s decision to raise its wage proposal came amid growing public pressure from the Biden administration to increase compensation for workers. However, the tentative pact does not address ongoing disputes regarding the use of automated machinery, which will be a central issue in future negotiations set to continue until January 15.
President Joe Biden expressed his support for the agreement, commending the ILA and USMX for working collaboratively to reopen East Coast and Gulf ports. He characterized the tentative agreement as a significant achievement in securing a strong contract for workers.
Tens of thousands of dockworkers had initiated a strike early Tuesday morning, affecting numerous ports along the East and Gulf coasts. This strike, termed the first coastwide action in nearly 50 years, saw ILA members establishing picket lines starting at 12:01 a.m.
The ILA, representing 50,000 dockworkers across these regions, was advocating for higher wages and restrictions on certain automated equipment. The union highlighted the essential nature of dockworkers’ contributions to maintaining and enhancing American commerce, emphasizing the financial struggles workers faced due to inadequate wage offerings amid rising inflation.
In light of the strike’s developments, President Biden urged for fair negotiations from the USMX, reiterating the substantial profits that shipping companies have generated in recent years and recognizing the efforts of dockworkers during the COVID-19 pandemic.
As the strike unfolded, USMX affirmed its commitment to negotiating in good faith to address the concerns raised by the ILA. Experts warned that a lengthy work stoppage could reignite inflation in various goods and lead to potential layoffs in manufacturing as supply chains became disrupted.
The last substantial strike affecting East Coast and Gulf Coast workers occurred in 1977 and lasted seven weeks, while a 2002 strike at West Coast ports continued for 11 days before President George W. Bush intervened using the Taft-Hartley Act to end the dispute.