The union representing 45,000 U.S. dockworkers at East and Gulf coast ports, the International Longshoremen’s Association, has agreed to suspend a three-day strike until Jan. 15 to allow for negotiations on a new contract.
Both the union and the U.S. Maritime Alliance, which represents ports and shipping companies, have also reached a tentative agreement on wage increases, with reports indicating a potential increase from about 50% over six years to 62%.
Driving the news: The strike commenced after the union’s contract expired, following disputes over pay and the automation of tasks at 36 ports extending from Maine to Texas.
- The strike’s timing during the holiday shopping season posed a potential risk of goods shortages on store shelves if prolonged, impacting cargo movement in and out of the United States.
- The workers will continue operating under the old contract until Jan. 15, with key negotiation issues including demands for a ban on port automation, concerns about pension contributions, and disagreements over royalties distribution.
