US port workers and operators reach deal to end strike

US dock workers and port operators have reached a tentative deal that will immediately end a three-day strike that has shut down shipping on the US east coast and Gulf Coast.

The tentative agreement is for a wage hike of around 62% over six years. That would raise average wages to about $63 (€57) an hour from $39 an hour over the life of the contract.

The International Longshoremen's Association (ILA) workers union had been seeking a 77% raise while the employer group, United States Maritime Alliance (USMX), had previously raised its offer to a nearly 50% hike.

The deal ends the biggest work stoppage of its kind in nearly half a century, which blocked unloading of containerships from Maine to Texas and threatened shortages of everything from bananas to auto parts, triggering a backlog of anchored ships outside major ports.

The union and the port operators said in a statement that they would extend their master contract until 15 January 2025 to return to the bargaining table to negotiate all outstanding issues.

"Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume," the statement said.

Among key issues that remain unresolved is automation that workers say will lead to job losses.

US President Joe Biden's administration has sided with the union, putting pressure on the port employers to raise their offer to secure a deal and citing the shipping industry's bumper profits since the COVID-19 pandemic.

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The tentative deal "represents critical progress towards a strong contract," Mr Biden said.

His administration has repeatedly resisted calls from business trade groups and republicans to use federal powers to halt the strike, a move that would undermine democratic support among unions ahead of the 5 November US presidential election.

'Good news’

The ILA launched the strike by 45,000 port workers, its first major work stoppage since 1977, on Tuesday after talks for a new six-year contract broke down.

JP Morgan analysts have said the strike would cost the US economy around $5 billion per day.

The strike affected 36 ports - including New York, Baltimore and Houston - that handle a range of containerised goods.

Economists have said the port closures would not initially raise consumer prices because companies had accelerated shipments in recent months of key goods.

However, prolonged stoppage would have eventually filtered through, with food prices likely to react first, according to Morgan Stanley economists.