Dockworkers Strike Ends with Tentative Wage Agreement

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The three-day dockworkers strike that halted shipping along the U.S. East Coast and Gulf Coast has ended. The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement on Thursday (October 3) that includes a wage increase of approximately 62% over six years, according to a source familiar with the matter. The agreement ends the largest work stoppage of its kind in nearly 50 years, which had resulted in a backlog of anchored ships outside major ports.

The ILA, which represents 45,000 port workers, launched the strike after talks for a new six-year contract broke down. The strike affected 36 ports, including New York, Baltimore, and Houston, and threatened shortages of everything from bananas to auto parts. The ILA had been seeking a 77% raise, while the employer group had previously offered a nearly 50% hike.

In a joint statement, both sides announced that they would extend their master contract until January 15, 2025, to continue negotiations on all outstanding issues. "Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume," the statement said.

The strike began at midnight on Monday (September 30) and was the first major work stoppage by the ILA since 1977. The tentative agreement has been praised by President Joe Biden, who had publicly urged the USMX to make a fair offer. The union and USMX will still need to come to terms on the question of automation, which has emerged as a more existential issue.


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