American dockworkers have decided to end their strike, after an agreement on wages, the union and employers announced Thursday. The blockage of ports for three days threatened to cause shortages and price increases in the United States.
The longshoremen’s union (ILA) and the United States Maritime Alliance (USMX), which represents their employers, “reached a tentative agreement on wages and agreed to extend the framework contract until January 15, 2025 in order to return to the negotiating table to negotiate all other outstanding issues,” according to a joint statement.
“From now on, all actions in progress will cease and all positions covered by the framework contract will resume,” it is specified. The two parties will have to meet again to discuss between now and January.
Salary increase of 62%
The press release does not provide details on the terms of the salary agreement. But according to the Wall Street Journal, which cites people familiar with the matter, employers proposed a 62% wage increase over six years, which made this agreement possible.
US President Joe Biden welcomed this agreement which will “reopen ports on the east coast and Gulf” of Mexico and which “represents crucial progress towards a solid contract”.
Protections against automation
Some 45,000 members of the dockers’ union have been on strike since Tuesday in 36 ports of the United States maritime alliance on the east coast and the Gulf of Mexico, for lack of agreement on a new six-year social agreement.
>> Read: American dockers on strike after failed negotiations
This agreement actually only concerns 25,000 union members working in the container and vehicle import/export terminals of fourteen major ports (including Boston, New York, Philadelphia, Baltimore, Savannah, Miami, Tampa and Houston).
Discussions, which began in May, were suspended for several weeks then reactivated a few hours before the previous contract expired Monday evening.
The USMX had raised its offer, proposing in particular a salary increase of 50% over the duration of the agreement, but which had been rejected by the union. The latter initially demanded 77%, according to American media, and notably calls for more protections against job losses linked to automation.
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