U.S. dock workers and port operators have reached a tentative deal that ends a crippling three-day strike, which had shut down 36 major ports along the East and Gulf Coasts.
According to Reuters, the agreement includes a 62% wage hike over six years, raising average hourly wages from $39 to $63. The strike, launched by 45,000 members of the International Longshoremen’s Association (ILA) on October 1, 2024, was the first major stoppage since 1977 and created a backlog of anchored ships outside major ports, threatening shortages of essential goods like food and auto parts.
The deal, which is set to run until January 15, 2025, leaves some issues unresolved, notably the automation of ports, which the union fears could lead to significant job losses. The ILA had initially sought a 77% wage increase, while employers represented by the United States Maritime Alliance (USMX) had offered nearly 50% before settling on the 62% figure, Reuters reports.
President Joe Biden’s administration played a key role in pushing for higher wage offers, with top officials, including Chief of Staff Jeff Zients, convening early morning talks with shipping industry leaders on October 3 to resolve the strike. Biden hailed the tentative deal as “critical progress” and a demonstration that collective bargaining works.
The strike had caused economic disruptions, with analysts estimating the stoppage was costing the U.S. economy $5 billion per day.
Meanwhile, major operators had implemented measures to reduce the impact of the strike. For instance, CMA CGM extended free time for containers during the strike and suspend demurrage and detention charges.