Importers and exporters are breathing a sigh of relief. A strike that closed 36 East Coast and Gulf Coast ports has been suspended until January. Members of the International Longshoremen’s Association (ILA) are returning to work today.
The walkout over stalled contract negotiations began Tuesday and threatened to throw the U.S. economy into chaos. Economists warned that a prolonged walkout would lead to shortages of many consumer goods and increase prices.
But the dockworkers’ union and the United States Maritime Alliance agreed to a tentative deal on wages and have extended their existing contract through Jan. 15.
“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues,” the union and the alliance said in a joint statement on Facebook.
Some damage from the brief work stoppage has already been done. Some containers ended up at the wrong ports, shipping costs have already risen, and consumers around the country engaged in panic buying of toilet paper, most of which is not imported.
The ILA walked out over wages and automation at ports. Under the tentative deal bringing them back to work, union members will get a 61% pay hike over six years. The automation issue is still the subject of negotiations.