Tentative Agreement Reached to End U.S. Port Strike

U.S. dockworkers and port operators have reached a tentative agreement to end a three-day strike that disrupted port operations at U.S. Atlantic and Gulf Coast ports. 

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) issued a joint statement announcing the agreement: “We 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 statement also confirmed an immediate cessation of all job actions, with work covered by the Master Contract set to resume promptly.

The dispute between the ILA and USMX, representing terminal operators including several foreign shipping companies, has centered on wage increases and automation. The agreed deal includes a substantial wage increase of approximately 62% for the workers, according to a source familiar with the negotiations.

The swift resolution will undoubtedly ease concerns about potential supply chain disruptions and economic impacts, which were estimated to reach into the billions of dollars per day. 

President Biden issued a statement applauding both sides on their ability to reach a deal to reopen ports.

“Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” Biden said. “Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”

While the wage increase has been settled, both parties will continue negotiations on outstanding issues. The extension of the Master Contract until early 2025 provides a framework for ongoing discussions and ensures labor stability in the short term.

Port operations are anticipated to return to normal as early as Thursday evening, minimizing further delays in cargo handling and shipping.

Despite mounting pressure to use presidential authority to end the strike, the Biden Administration had maintained that collective bargaining was the best method to resolve the dispute, but also urging port employers to improve their offer to secure a deal.

The National Retail Federation called the tentative agreement “good news for the nation’s economy” and it urged both sides to continue negotiating to reach a final agreement by the new January 15th deadline. “It is critically important that the International Longshoremen’s Association and United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families,” the NRF said.

Transportation Secretary Pete Buttigieg issued a statement expressing gratitude to all parties involved for prioritizing the country’s needs, reopening ports, and ensuring the movement of essential goods, particularly those destined for areas affected by Hurricane Helene.

“This tentative agreement to get workers a historic and much-deserved raise would not be possible without the leadership of President Biden, Vice President Harris, the ILA, and the USMX member companies,” Buttigieg said. “In the coming days and weeks, our Department will continue to coordinate closely with stakeholders across America’s supply chains to support an orderly process of returning these ports to service and to encourage a good outcome in the subsequent contract negotiations.”

“As President Biden, Vice President Harris and this administration have said again and again, collective bargaining works,” said Acting Secretary of Labor Julie Su. “I applaud the longshoremen who do such important work and deserve to be valued for it, and the companies for the critical role they play in our supply chain and for recognizing the invaluable contributions of their workers.”

Joint Statement from the ILA-USMX Regarding Tentative Agreement:

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

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