The union representing 45,000 striking U.S. dockworkers at East and Gulf Coast ports says it has reached an agreement to suspend their strike until January to buy time to negotiate a new contract.
The International Longshoremen’s Association and the American Maritime Alliance said in a joint statement that they had reached a tentative agreement on the wage increase, a major sticking point in the labor dispute that has hampered supply chains in North America for two days.
The union said the workers would return to their jobs immediately, and the two sides would return to the negotiating table to negotiate all other outstanding issues.
“With immediate effect, all current functional actions will cease and all work covered by the main contract will resume,” the joint statement said.
The union went on strike early Tuesday after its contract expired over a dispute over wages and automation of tasks at ports from Maine to Texas. The strike came at the height of the holiday shopping season at 36 ports that handle about half of the cargo coming from ships coming into and out of the United States.
The strike also affected goods entering Canada from those ports, which have the capacity to handle much greater capacity than Canadian east coast ports.
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Port workers in Montreal ended a 72-hour strike on Thursday. The action closed two terminals handling about 40 per cent of container traffic at Canada’s second-largest port.
The strike in the United States has increased the risk of shortages of goods on store shelves if it continues for more than a few weeks. Most U.S. retailers stocked or shipped merchandise ahead of time in anticipation of a business shutdown.
There are still concerns about backlogs at ports as a result of the strike, even if it is for a short period. Economists expected it would take up to six days to clear that backlog for each day the strike continues.
The Canadian Chamber of Commerce says $3.6 billion worth of goods cross between the United States and Canada every day.
US President Joe Biden had refrained from intervening in the strike despite the potential economic impact, but he put pressure on the US Maritime Alliance this week to “sit at the table and make a fair offer to the workers.”
His statement Tuesday pointed to the “record profits” that transportation companies have made since the pandemic shutdowns, and said it’s time for workers to share in those benefits.
Biden praised the tentative agreement in a statement issued by the White House on Thursday, noting the need to reopen ports to transport vital supplies to states affected by Hurricane Helen.
“By the grace of God… you will survive,” the president told reporters after landing at Joint Base Andrews aboard Air Force One on Thursday night.
Acting US Secretary of Labor Julie Su was in direct contact with both sides before the strike to try to stimulate negotiations.
—With files from The Associated Press
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