The U.S. dockworkers’ strike was suspended Thursday after the International Longshoremen’s Association (ILA) and the United States Maritime Alliance reached a tentative wage agreement. The contract, extended through January 15, allows additional time to negotiate unresolved issues, notably automation, which remains a contentious point.
The strike, which began earlier in the week, had halted operations at key East and Gulf Coast ports, disrupting the supply of goods such as fruits and automobiles. The suspension allows dockworkers to resume activities and work through the backlog of goods that had accumulated offshore.
The tentative wage agreement includes a 61.5% increase over six years. Although both parties reached this agreement, they have about 100 days to finalize negotiations on other aspects, including the union’s concerns over job security related to port automation.
With ports gradually reopening, the logistics industry faces a recovery period of several weeks. Supply chain congestion will likely take time to resolve as thousands of containers wait for processing. Major ports, including those in Georgia and New Jersey, began resuming operations on Friday, signaling a return to normalcy.
Acting Labor Secretary Julie Su played a significant role in facilitating the deal, which comes as a relief to industries affected by supply chain delays. However, stakeholders remain cautious, as failure to reach a comprehensive agreement by January could lead to further disruptions.
Source: CNBC