US dockworkers have agreed to end a three-day strike that brought shipping to a standstill along the east and Gulf coasts, after reaching a tentative six-year pay deal with the United States Maritime Alliance (USMX).
The strike, which began on October 1, halted container traffic at 36 ports from Maine to Texas, affecting major hubs like New York, Baltimore, and Houston.
Members of the International Longshoremen’s Association (ILA) union, representing 45,000 workers, walked out for the first time since 1977. The economic cost of the strike was estimated at up to $5 billion per day by JP Morgan analysts. Workers returned to their posts after the USMX agreed to a wage increase of 62% over six years. The deal represents a significant improvement over the employers’ earlier offer of a 50% rise.
Despite this resolution, the dockworkers have only suspended their strike until January. The union has said it will return to the bargaining table to negotiate on other issues, particularly automation, which the ILA fears will lead to widespread job losses.
President Joe Biden welcomed the agreement, emphasizing the importance of the dockworkers to the nation’s economy. “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” Biden said. Vice-President Kamala Harris also praised the deal, reiterating the power of collective bargaining and the importance of fair wages for essential workers.
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