THE INTERNATIONAL Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have released a joint statement announcing a tentative agreement has been reached, agreeing to extend the Master Contract to January 15, 2025.
The announcement declares the cessation of the current work stoppages and actions, effective immediately, with all work covered by the Master Contract to resume.
The move sees the end of the port strikes, which saw thousands of port workers across 36 ports along the US east and Gulf coasts walk off the job, bringing approximately half of the country’s shipping to a halt.
The extension of the current contract will see both sides now return to the bargaining table to negotiate “all other outstanding issues”.
Reports out of North America claim that the employer union offered a 62% wage increase over six years for the new contract, upping its previous offer of an approximately 50% increase.
The new offer would see average wages raised to approximately USD$63 an hour from USD$39 an hour over the course of the contract.
Automation however remains an unresolved issue between the two parties, with the ILA seeking a halt to certain port automation projects, which it believes would result in job losses for its members.
US President Joe Biden, who had firmly backed the union during the strike, said the tentative deal “represents critical progress towards a strong contract”.
“I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic,” President Biden said.
“And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table.”
The end of the work actions will be welcomed by shipping lines, with a logjam of ships having already started to build outside key US ports, as major shipping lines, including CMA CGM and APL, declared force majeure in the wake of delays resulting from the strike.
