A historic strike at U.S. ports has been suspended following a tentative agreement on wage increases, according to a joint announcement by the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).
“Effective immediately, all job actions will cease, and work covered by the Master Contract will resume,” the ILA and USMX said in a statement on Thursday evening.
Sources confirmed that the tentative agreement includes a 62% wage increase over the six-year contract, a significant rise from the shipping industry’s earlier offer of 50%. The union had been advocating for a 77% wage hike, according to an ABC New report.
Under the new agreement, top dockworkers would see their hourly wage rise from US$39 to US$63 by the end of the contract. This deal follows public pressure from the Biden administration, which urged the Maritime Alliance to offer higher wages.
However, the agreement does not address disputes over the use of automated machinery, a key issue that both sides will continue to negotiate until January 15.
President Joe Biden praised the tentative deal, stating, “This agreement on record wages and the extension of the collective bargaining process represents critical progress toward a strong contract.” He also commended the efforts of all parties in reopening the ports and ensuring vital supplies for Hurricane Helene recovery efforts.
The strike, which began early Tuesday, saw tens of thousands of dockworkers walking off the job, disrupting operations at ports along the East and Gulf coasts. It marked the first coastwide strike in nearly 50 years, with the union demanding higher wages and restrictions on automated equipment.
The USMX had stated its commitment to negotiating in good faith amid the strike. A prolonged work stoppage could have worsened inflation and led to layoffs as manufacturers faced material shortages, experts warned.
The tentative deal marks a significant turning point in a dispute that threatened to cripple key supply chains across the United States. With ports along the East and Gulf coasts serving as critical hubs for imports and exports, the strike had already begun to cause bottlenecks in the flow of goods.
Economists had warned that a protracted shutdown could have exacerbated inflationary pressures on consumer goods and raw materials, potentially leading to higher prices and job losses in industries dependent on timely shipments. The swift suspension of the strike mitigated what could have been a severe blow to the U.S. economy during a fragile recovery phase.
Despite the breakthrough in wages, major challenges remain, particularly regarding the union’s concerns over automation. Dockworkers have voiced fears that automated machinery could lead to significant job losses and undermine the long-term viability of their profession.
These concerns are expected to dominate the next round of talks as both sides attempt to navigate the balance between modernization and job security. With negotiations set to continue until mid-January, the outcome of these discussions will be closely watched by labor advocates and industry leaders alike, as it could set a precedent for future labor disputes in increasingly automated industries.
