The union representing tens of thousands of dockworkers across the US has agreed to suspend its strike while negotiations continue.Members of the International Longshoremen’s Association (ILA) walked out on Tuesday at 14 major ports along the east and Gulf coasts, halting container traffic from Maine to Texas.The union says it has reached a tentative agreement on wages and will go back to work on Friday until 15 January, when they will return to the bargaining table to negotiate “all other outstanding issues”.The action marked the first such shutdown in almost 50 years and threatened to wreak chaos amid the busy holiday shopping season and forthcoming presidential election.
“Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” said a joint statement by the ILA and the employers’ group – United States Maritime Alliance (USMX).Under the tentative agreement, wages would go up by 62% over the next six years.
But negotiations will continue over a number of outstanding issues, including automation.The union had been calling for a 77% wage hike, while USMX had previously increased its pay rise offer to almost 50%.
Businesses had been bracing for the possibility of a prolonged shutdown, which threatened to disrupt global trade and the US economy.Some firms had been building up supplies as warnings of the strike circulated over the summer.Many consumers had also been fearful and were stocking up on some supplies, like baby formula and toilet paper.Under the 2018 contract that expired on Monday, dockworkers earned a base hourly wage of $20-$39, as well as other benefits, including royalties linked to container traffic.Harold Daggett, head of the ILA, demanded companies agree to boost hourly pay by $5 for each year of the contract.The union, which has about 47,000 active members according to federal filings, is also seeking protections against automation.