The union representing 45,000 American workers on strike in the East and Gulf coast ports has reached an agreement to stop the strike for three days until Jan. 15 to allow time to negotiate a new contract.
The union, the International Longshoremen’s Association, will resume operations immediately. The union and the US Maritime Alliance, which represents ports and shipping companies, also reached a partial agreement on wage increases, but no details were provided, according to a joint statement from the ports and the union Thursday night.
Someone who was informed about this agreement said that the ports increased their salary from 50 percent in six years to 62 percent. This person did not want to be revealed because the agreement is meaningless. Any wage increase would have to be approved by union members as part of the ratification of the final contract.
In a statement welcoming the news, US President Joe Biden said, “Today’s agreement on record wages and an extension of the collective bargaining process represents significant progress toward a strong contract.”
“By the grace of God, and the goodwill of the neighbors, it will hold,” Biden told reporters Thursday night.
Automation and wages are at risk for striking workers
The union went on strike early Tuesday after its contract expired over a dispute over wages and the automation of tasks at 36 ports from Maine to Texas. The strike comes just in time for the holiday shopping season at the ports, which handle about half of the cargo from ships entering and leaving the United States.
The walkout raised the risk of a shortage of goods on store shelves if it lasted more than a few weeks. However, many retailers had stocked up or shipped items ahead of time in anticipation of the dock workers’ strike.
With shipping workers on the US East Coast and Gulf Coast on strike, analysts say the disruption could cost billions of dollars if it continues. Andrew Chang breaks down the potential domino effect on the US economy, and why despite the high stakes, it may not be as difficult as it seems. Photos provided by Getty Images and Reuters.
Union members will not need to vote on a temporary suspension of the strike. Until Jan. 15, the workers will be covered under the old contract, which expired on September 30.
This union has been calling for a complete ban on the use of automatic machines in the ports, which they see as a danger to their work.
Both sides also differed on pension issues and the distribution of money paid to containers delivered by workers.
Shortly before the strike began, the Maritime Alliance said both sides had withdrawn their wage offer, a sign of progress.
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