The union representing 45,000 striking US dockworkers at East and Gulf of Mexico ports suspended three days of strikes until 15 January to negotiate a new contract, according to AP News.
The temporary end to the strike came after the International Longshoremen’s Association (ILA) and the US Maritime Alliance, which represented ports and shipping companies, reached a tentative agreement on wages, according to a joint statement.
The union went on strike Tuesday morning after its contract expired over pay and automation task dispute at 36 ports. The strike came at the peak of the holiday shopping season at the ports processing about half of the cargo from ships arriving in and out of the US.
In his statement, President Joe Biden applauded both sides “for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.”
Crisis recedes
Until 15 January, workers would operate under the old contract, which expired on 30 September. The union demanded a 77 per cent raise over six years, as well as a complete ban on the use of automation at the ports, which union members considered a threat to their jobs.
Industry analysts argue that each day of industrial action at the port requires four to six days to recover. However, a short strike of a few days would probably not disrupt the supply chain too much, they added.
Thursday’s agreement came after administration officials met with foreign shipping companies before dawn at Zoom. The White House emphasised the need to reopen ports to help with recovery from Hurricane Helene, a person familiar with the matter said.
Acting Labour Secretary Julie Su stated that she could persuade the union to come to the negotiating table for a contract extension if the carriers made an offer of higher wages. Maritime Alliance members agreed to a significant increase by midday, leading to an agreement, the source added.
