Unions representing tens of thousands of longshoremen across the country have agreed to suspend strikes while negotiations continue.
Members of the International Longshoremen’s Association (ILA) evacuated 14 major ports along the East Coast and Gulf Coast on Tuesday, halting container shipments from Maine to Texas.
The union says it has reached a tentative agreement on wages and will return to work from Friday until January 15, after which it will return to the bargaining table to negotiate “all other outstanding issues.”
The move, the first such shutdown in nearly 50 years, threatened to cause chaos amid the busy holiday shopping season and the upcoming presidential election.
“Effective immediately, all current job-related activities will be suspended and all operations covered by the Master Agreement will resume,” the ILA and employer organization United States Maritime Alliance (USMX) said in a joint statement. Ta.
Under the interim agreement, wages would rise by 62% over the next six years, according to BBC News.
But negotiations will continue over a number of unresolved issues, including automation.
USMX had previously raised its wage increase proposal to almost 50%, while the union was demanding a 77% increase.
The BBC has contacted the ILA and USMX for comment.
“ILA’s short strike…will surely rank among the most lucrative three days in labor history,” said Patrick L. Anderson, CEO of Anderson Economic Group, a business consultancy. Ta.
“ILA workers apparently achieved a 60% wage increase after giving up three days of work in a strike that did not seriously damage the U.S. economy.”
The strike began on Tuesday after negotiations failed to reach a new six-year contract.
The strike was the ILA’s first major suspension since 1977.
The affected ports included some of the nation’s busiest, including New York, Georgia and Texas. Experts estimate that these companies handle more than a third of U.S. imports and exports.
US President Joe Biden praised the interim agreement in a statement Thursday night, saying it “marks significant progress toward a strong deal.”
“I congratulate ILA’s longshoremen who have made tremendous sacrifices to keep our ports open during the pandemic and deserve a strong contract,” Biden said.
“And I commend the port operators and carriers who are members of the U.S. Maritime Alliance for working hard and putting forward strong proposals.”
Biden said ports need to be open “to ensure critical supplies are available” for victims of Hurricane Helen, which killed more than 200 people in the southeastern United States.
The news of the suspension was also welcomed by business owners.
“The decision to end the current strike and allow ports on the East Coast and Gulf Coast to reopen is good news for the nation’s economy,” Matthew Shea, president and CEO of the National Retail Federation, said in a statement. ” he said.
Businesses were bracing for the possibility of a prolonged shutdown that could disrupt global trade and the U.S. economy.
Some companies had been building up supplies as strike warnings spread over the summer.
Many consumers were also scared and stocked up on essential items like baby formula and toilet paper.
Under the 2018 contract, which expired on Monday, longshoremen earned a base wage of $20 to $39 an hour, as well as royalties and other benefits for shipping containers.
ILA Director Harold Daggett asked companies to agree to a $5 hourly wage increase for each contract period.
The union, which has about 47,000 active members, also wants protections against automation, according to federal filings.
