A strike by tens of thousands of dockworkers on the East and Gulf coasts that could have caused significant damage to the U.S. economy has come to an end. All workers returned to work on Thursday after a three-day strike, following a tentative agreement on wages between the International Longshoremen’s Association and the United States Maritime Alliance, which represents ocean carriers and port operators.
According to sources familiar with the deal, the two sides have agreed to a 62% wage increase over six years, slightly lower than the 77% increase the union had originally sought. The existing contract has been extended until January 15, 2025, with negotiations set to resume on other outstanding issues, including the union’s demand for a ban on automation at the ports.
The White House played a significant role behind the scenes, with President Biden refusing to intervene directly but urging the U.S. Maritime Alliance to present a fair offer to the workers. After facing pressure from House Republicans and industry groups, Biden emphasized the importance of fair wages for workers who had risked their health during the pandemic to keep the ports operational.
The agreement was reached after several days of intense negotiations involving senior administration officials, foreign shipping companies, and the union. Biden expressed gratitude to all parties involved for their efforts in reopening the ports and preventing a potential economic disaster.
The affected ports, which handle over half of all cargo containers entering the U.S. and more than 300,000 containers leaving the country every month, are now back in operation. While work will resume immediately, it may take some time to clear the backlog of ships waiting offshore for the strike to end.
Industry leaders, including Jay Timmons from the National Association of Manufacturers and retailers from the Retail Industry Leaders Association, welcomed the resolution of the strike, emphasizing the importance of preserving jobs, safeguarding supply chains, and preventing further economic disruptions. With the ports back in operation, the focus can now shift to ensuring a smooth holiday season for consumers and businesses alike.
