A historic U.S. port strike has been suspended following a tentative agreement on wages between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).
In a joint statement Thursday evening, both parties announced: “Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume.”
Sources confirmed the deal includes a 62% wage increase over the six-year contract period, a significant rise from the 50% increase initially offered by the shipping industry group earlier this week. The union had been pushing for a 77% wage hike.
Under the new contract, top dockworkers will earn $63 per hour by the end of the agreement, up from $39 per hour in the previous contract.
The U.S. Maritime Alliance increased its wage offer following public pressure from the Biden administration, which had urged a more substantial pay raise.
However, the tentative deal does not address ongoing disagreements regarding the use of automated machinery at ports, a key issue set for further negotiations before the January 15 deadline.
President Joe Biden praised the development, stating, “I want to applaud the International Longshoremen’s Association and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports. Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress toward a strong contract.”
