By The International Longshoremen’s Association, representing 45,000 U.S. dockworkers, agreed Thursday to suspend its three-day strike at East and Gulf coast ports until January 15, allowing time for further contract negotiations.
The union will resume work immediately under the terms of the expired contract, according to a joint statement from the ports and the union. The U.S. Maritime Alliance, representing ports and shipping companies, also reached a tentative agreement on wage increases, though details were not disclosed.
A source familiar with the negotiations, speaking on condition of anonymity, said the ports increased their wage offer from about 50% over six years to 62%. Any wage agreement would require ratification by union members as part of a final contract.
The strike, which began Tuesday after the contract expired, affected 36 ports from Maine to Texas. It raised concerns about potential goods shortages during the peak holiday shopping season, although many retailers had prepared by stocking up or shipping early.
President Joe Biden expressed optimism about the agreement, telling reporters, “With the grace of God, and the goodwill of neighbors, it’s gonna hold.”
Key issues in the dispute include the union’s demand for a ban on port automation, which they view as a job threat, disagreements over pension contributions, and distribution of royalties on container movements.
The temporary suspension does not require a union membership vote. Negotiations will continue under the framework of the old contract, which expired on September 30.
This development provides a reprieve for the U.S. supply chain, which handles about half of the country’s maritime cargo through these ports. As talks resume, both sides will work to address the remaining points of contention before the new January deadline.
The agreement comes at a critical time for the U.S. economy, with the holiday shopping season in full swing and businesses relying on smooth port operations. The suspension of the strike alleviates immediate concerns about supply chain disruptions, but the outcome of the ongoing negotiations will be closely watched by industries dependent on maritime trade.
AP
