A major breakthrough was achieved on Thursday as the U.S. dockworkers union and the United States Maritime Alliance (USMX) announced a tentative agreement regarding wages, ending a disruptive strike that began earlier in the week, impacting East Coast and Gulf Coast ports.
The parties have extended their existing contract through January 15, 2025, allowing additional time to negotiate other aspects of a new contract.
The strike, which was the first by the International Longshoremen’s Association (ILA) since 1977, had caused significant disruptions, including misdirected shipments and suspended port operations that delayed billions of dollars worth of goods, such as fruits and automobiles, while also inflating shipping costs.
ILA President Harold Daggett previously highlighted the union’s demand for a $5 per hour wage increase for each year of the proposed six-year deal. Under the tentative agreement, ILA wages are set to rise by 61.5% over the six years, though negotiations continue regarding the contentious issue of port automation.
This interim resolution has allowed for a cessation of strike activities, involving about 50,000 of the union’s 85,000 members and affecting operations across 14 different ports. The joint statement from the ILA and the USMX marks a significant step toward resolving the conflict and restoring full functionality to the affected U.S. supply chains.
