The three-day longshoremen strike, which triggered nationwide concern about potential supply chain disruptions in the U.S., is set to end immediately after dockworkers and port operators reached an agreement.
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The strike, which interrupted incoming shipments at dozens of ports from Maine to Texas, will be temporarily paused until at least January 15 based on the agreement between the International Longshoreman’s Association and the U.S. Maritime Alliance for wage increases for workers. In a statement, both parties said, “Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume.”
The tentative deal includes an approximately 62% wage hike over six years for dockworkers. Although the union initially sought a 77% increase, settling the wage issue allowed both sides to agree to extend the master contract through January 15, 2025. This gives negotiators more time to resolve other contract issues while dockworkers return to their jobs, according to the New York Post.
The strike began after midnight on Tuesday when the previous contract expired, the first time since 1977 that the ILA’s dockworkers walked off the job. However, the West Coast ports have remained operational since a different union represents them. Still, the walkout has caused a backlog of container ships anchored outside New York, Baltimore, Houston, Philadelphia, and Miami.
If the strike continued, it threatened to cause shipping delays, product shortages, and price increases on items ranging from bananas and coffee to Christmas trees and auto parts.
