A major port strike in the United States has been suspended following a tentative agreement on wages between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). The two parties announced the decision to halt all job actions and resume work as of Thursday evening.
Under the proposed agreement, dockworkers will see their pay increase by 62% over the span of the six-year contract, according to sources familiar with the situation. This represents a significant improvement from an earlier offer of a 50% salary hike made by the shipping industry representatives this week. The union had originally aimed for a 77% pay increase.
Once finalized, this deal would raise the hourly wage for leading dockworkers from $39 to $63 by the contract’s conclusion. The Maritime Alliance adjusted its offer in response to public demands from the Biden administration for better wage proposals.
However, the tentative agreement does not address ongoing disputes concerning the use of automated machinery, which will continue to be a critical 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 their efforts to reopen East Coast and Gulf ports. He highlighted the significance of the record wage increase and the continuation of collective bargaining, praising all parties involved for their commitment to resolving the situation, especially in light of the ongoing recovery efforts from Hurricane Helene.
The strike, which commenced early Tuesday morning, saw tens of thousands of dockworkers walk off the job, affecting numerous ports along the East and Gulf coasts. This marked the first coastwide strike in nearly 50 years for the ILA, representing around 50,000 dockworkers in the region.
The ILA emphasized the importance of fair compensation for the workers who play a crucial role in facilitating American commerce, citing the impact of inflation on their livelihoods. President Biden additionally emphasized the profits shipping companies have enjoyed recently and the sacrifices made by dockworkers during the COVID-19 pandemic.
As the strike unfolded, USMX reaffirmed its commitment to negotiate earnestly to meet the ILA’s demands while addressing its own concerns.
Experts warned that a lengthy work stoppage could worsen inflation and lead to job losses in manufacturing due to supply shortages. The last significant strike affecting East Coast and Gulf workers in 1977 lasted seven weeks, while a 2002 strike at West Coast ports ended after 11 days when then-President George W. Bush intervened.