A strike by tens of thousands of dockworkers on the East and Gulf coasts, that could have seriously hurt the U.S. economy had it continued, has been called off.
All workers were called back to work Thursday, after a three-day strike, following a tentative agreement on wages between the International Longshoremen’s Association and the United States Maritime Alliance, representing ocean carriers and port operators.
The two sides have agreed to a 62% wage increase over six years, according to sources who were familiar with the deal but not authorized to speak publicly about it. The union had been seeking a 77% increase over six years. A day before the strike began, the companies had offered nearly 50% in raises.
The parties have also agreed to extend the existing contract until Jan. 15, 2025. They will return to the bargaining table to negotiate all other outstanding issues, including the union’s demand of a ban on all automation at the ports.
The affected ports — from Boston to Houston — normally handle more than half of all cargo containers coming into the U.S., or about a million containers a month, as well as more than 300,000 containers heading out of the country, according to the freight-tracking company Vizion.
Effective immediately, all work will resume, the two sides said in a joint statement. But it could take some days to clear the backlog of ships — scores of them — that were waiting offshore for the strike to end.
In a statement, Jay Timmons, President of the National Association of Manufacturers said manufacturers were encouraged that cooler heads had prevailed.
“It is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions,” Timmons wrote.
Ahead of the holiday season, retailers also expressed relief.
“Without the specter of disruption looming, the U.S. economy can continue on its path for growth and retailers can focus on delivering for consumers,” the Retail Industry Leaders Association said in a statement.