The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have reached a tentative agreement on wages, temporarily ending a strike that had paralysed ports on the US East and Gulf Coasts.
In a joint statement, both parties announced the extension of the Master Contract until January 15, 2025, to allow further negotiations on unresolved issues.
Effective immediately, all job actions have ceased, and work covered by the contract has resumed.
The strike, which began after the six-year Master Contract expired on September 30, had severely disrupted port operations. While the details of the wage agreement were not disclosed, reports suggest it involves a 61-62% wage increase over six years.
The ILA had initially sought a 77% increase, while USMX had previously offered “nearly 50%.”
US President Joe Biden praised the tentative deal, calling it “critical progress” toward a robust contract. He lauded dockworkers for their contributions during the pandemic and commended port operators for improving their offer.
With a deadline of January 2025, both parties now aim to resolve other major issues, including terminal automation, which had caused a breakdown in negotiations earlier this year.
The ILA is pushing to halt further automation and preserve dockworker jobs, while employers are advocating for retaining current automation practices. Another key issue is the allocation of Container Royalty payments, which the union demands be entirely distributed to members as wage supplements.
Despite the strike’s resolution, it may take time for normal operations to resume, with a backlog of vessels and cargo waiting to be processed. Ports like Virginia and New Orleans are gradually restoring operations, with estimates of a full recovery within 24 hours.
Cary S. Davis, President and CEO of the Association of American Port Authorities, expressed relief at the strike’s end, emphasising the resilience of the US port system in overcoming disruptions.
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