DETROIT — The union representing 45,000 U.S. dockworkers striking at East Coast and Gulf ports reached an agreement Thursday to suspend a three-day strike until Jan. 15 to give time to negotiate a new contract.
The union, the International Longshore Association, must resume operations immediately. The temporary end to the strike came after the union and the American Maritime Alliance, which represents ports and shipping companies, reached a tentative agreement on wages, the union and ports said in a joint statement .
A person briefed on the deal said the ports had improved their wage offer from about 50% over six years to 62%. The person does not wish to be identified because the agreement is provisional. Any salary increase would have to be approved by union members as part of the ratification of a final contract.
The union went on strike early Tuesday after its contract expired amid a dispute over wages and job automation at 36 ports stretching from Maine to Texas. The strike came at the height of the holiday season at the ports, which handle about half of the cargo from ships entering and leaving the United States.
The walkout increases the risk of shortages of goods on store shelves if it lasts more than a few weeks. However, most retailers had stocked or shipped their items early in anticipation of the dockers’ strike.
“With the grace of God and the goodwill of neighbors, this is going to hold,” President Joe Biden told reporters Thursday evening after the deal.
In a later statement, Biden applauded both parties “for acting patriotically to reopen our ports and ensure the availability of essential supplies for recovery and rebuilding after Hurricane Helen.”
Biden said collective bargaining is “essential to building a stronger economy from the middle and the bottom up.”
Union members will not need to vote on temporarily suspending the strike, meaning giant cranes are expected to begin loading and unloading shipping containers Thursday evening. Until January 15, workers will be covered by the old contract, which expired on September 30.
The union was demanding a 77% increase over six years, as well as a total ban on the use of automation at ports, which members see as a threat to their jobs. The two camps also disagree on the issues of pension contributions and the distribution of royalties paid on containers moved by workers.
Thomas Kohler, who teaches labor and employment law at Boston College, said the agreement to end the strike means the two sides are close to a final agreement.
“I’m sure if they hadn’t gone anywhere, they wouldn’t have suspended (the strike),” he said. “They have salaries. They’re going to work out the language on automation, and I’m sure that really means that it gives the parties time to sit down and get exactly the language that they can both live with.
Industry analysts say that for every day of a port strike, it takes four to six days to recover. But they said a short strike of a few days probably wouldn’t hamper the supply chain too much.
Kohler said the surprise end to the strike could surprise railroads with cars, locomotives and crews out of position. But the railroads will likely work quickly to resolve this problem.
Just before the strike began, the Maritime Alliance said both sides had abandoned their initial wage offers, a tentative sign of progress.
The deal pushes the strike and any potential shortages beyond the November presidential election, eliminating any potential liability for Vice President Kamala Harris, the Democratic nominee. It’s also a big plus for the Biden-Harris administration, which presents itself as the most union-friendly in American history.
The shortages could have raised prices and reignited inflation.
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