The union had walked out on Tuesday at 14 major ports along the East and Gulf coasts, disrupting container traffic from Maine to Texas.
The ILA has reached a tentative agreement on wage increases and plans to return to work on Friday. They will continue negotiations on other outstanding issues until January 15. This strike marked the first major shutdown of its kind in nearly 50 years, raising concerns about disruptions during the busy holiday season and the upcoming presidential election.
According to a joint statement from the ILA and the United States Maritime Alliance (USMX), all job actions will cease immediately, and work covered by the Master Contract will resume. The tentative agreement includes a 62% wage increase over the next six years. However, discussions will remain ongoing regarding automation and other issues.
Prior to the agreement, the union had sought a 77% wage hike, while USMX had increased its offer to nearly 50%. Patrick L. Anderson, CEO of Anderson Economic Group, remarked that the ILA workers achieved significant wage increases after only three days of work stoppage, which did not cause major damage to the economy.
The strike began after negotiations for a new six-year contract stalled. The affected ports are among the busiest in the nation and handle over a third of U.S. imports and exports.
President Joe Biden expressed support for the tentative agreement, stating that it represents important progress towards a strong contract. He commended the dockworkers for their dedication during the pandemic and acknowledged the efforts of port operators and carriers involved in the negotiations.
The decision to suspend the strike was welcomed by business owners, who were concerned about the potential for a prolonged shutdown that could disrupt global trade and the U.S. economy. Many businesses had been stockpiling supplies in anticipation of the strike.
Under the previous contract that expired on Monday, dockworkers earned between $20 and $39 per hour, along with other benefits linked to container traffic. ILA President Harold Daggett is also advocating for an additional $5 per hour increase for each year of the new contract, as well as protections against automation for the approximately 47,000 active union members.