DETROIT — The union representing 45,000 U.S. dockworkers at East and Gulf Coast ports has reached an agreement to temporarily halt their three-day strike, allowing more time to negotiate a new contract. The strike is paused until January 15, with workers set to resume operations immediately.
The International Longshoremen’s Association and the U.S. Maritime Alliance, representing the ports and shipping companies, announced a tentative agreement on wages. Sources familiar with the deal revealed that the wage offer increased from a 50% raise over six years to 62%. The deal will need union member approval as part of the final contract ratification process.
The strike began on Tuesday following the expiration of the dockworkers’ contract, primarily over disputes regarding pay and job automation at 36 ports from Maine to Texas. The walkout occurred during the peak of the holiday shopping season, threatening potential shortages of goods if the strike persisted for weeks. However, many retailers had already stocked up, anticipating the labor stoppage.
President Joe Biden expressed optimism about the agreement, stating, “With the grace of God, and the goodwill of neighbors, it’s gonna hold.” Later, he commended both sides for reopening the ports, ensuring the flow of critical supplies, especially for the ongoing recovery efforts after Hurricane Helene. He also underscored the importance of collective bargaining in building a stronger economy.
The union, which had sought a 77% wage increase over six years and a ban on port automation, will continue working under the terms of the expired contract until mid-January. Union members will not need to vote on the temporary suspension of the strike, and port operations were expected to resume Thursday night.
Labor expert Thomas Kohler from Boston College noted that the suspension of the strike suggests both parties are nearing a final agreement. “They’ve got wages sorted. They’ll figure out the language on automation, and this gives them time to finalize a deal they can both agree on,” Kohler said.
Although the strike was brief, industry analysts estimate that it may take four to six days to fully recover for each day of lost operations. However, a short disruption is unlikely to severely impact the supply chain.
The timing of the agreement also pushes the risk of further strikes and supply shortages beyond the November presidential election, providing a political boost for the Biden-Harris administration, which has positioned itself as highly pro-labor. Prolonged shortages could have increased prices and reignited inflation concerns.