The three-day strike by dockworkers that sparked panic buying across the United States over concerns about potential supply chain problems was called off after the Port workers and port operators reached a tentative agreement.
“Effective immediately, all current labor actions will cease and all work covered by the Framework Agreement will resume,” both sides said in a joint statement late Thursday.
Under the agreement, members of the International Longshoremen’s Association will see a pay increase of approximately 62 percent.
But for the wage increase to take effect, the dockworkers union’s nearly 45,000 members would have to ratify a new contract, which they hope to fully finalize by Jan. 15.
Meanwhile, the two sides will continue negotiations on several other contract issues, including protections against automation, as they return to work under their current contract.
The three-day dockworkers’ strike was called off after dockworkers and port operators reached a provisional agreement on Thursday.
Members of the International Longshoremen’s Association do not need to vote on whether to call off the strike, which began Tuesday over wage disputes and the automation of gates, cranes and container trucks at 36 ports from Texas to Maine.
The union had been seeking a raise of $5 an hour in each of the next six years, which amounted to a 77 percent pay increase over a six-year period. according to NPR.
Its members also sought higher pension contributions and a fair distribution of royalties paid for containers moved by members.
The announcement of a strike came at the peak of the holiday shopping season at ports, which handle about half the cargo of ships entering and leaving the United States.
Goods ranging from Food deliveries to cars were then blocked, which JPMorgan analysts estimated could cost the economy up to $5 billion a day. according to the guardian.
Eric Clark, portfolio manager at Accuvest Global Advisors, also said USA TODAY: ‘Any strike that lasts more than a week could cause shortages of holiday products.
“We could get a similar or worse rate of inflation for six months than the peak inflation levels of a year ago.”
The strike began Tuesday over wage disputes and the automation of gates, cranes and container shipping trucks at 36 ports from Texas to Maine.
Members of the International Longshoremen’s Association had been seeking a five-dollar-an-hour increase in each of the next six years, which amounted to a 77 percent increase in wages over a six-year period, increased contributions to pensions and a fair distribution of royalties paid on container members moved
The news prompted Virginia residents to stock up on toilet paper rolls, but most retailers in the United States had stockpiled items shipped early in anticipation of the strike.
But many American retailers had stockpiled or shipped their products early in anticipation of the strike.
The White House attempted to downplay the economic impact of the strike, despite warnings from House Republicans and more than 170 industry groups that a work stoppage would be devastating, as dozens of container ships lined up at high seas waiting to distribute its cargo.
Dozens of cargo ships lined up on the high seas to distribute their goods in US ports amid the strike.
Then, as news emerged that the two sides had reached a tentative agreement and that the International Longshoremen’s Association would call off its strike, President Joe Biden told reporters: “With the grace of God and the good will of neighbors, will maintain”.
In a later statement, he applauded both sides “for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and reconstruction.”
The president went on to say that collective bargaining is “critical to building a stronger economy from the center out and from the bottom up.”