A strike that shutdown ports along the U.S. eastern seaboard has ended with a deal that improves wages and extends the contract of 45,000 dockworkers into next year.
The agreement brought a swift end to a 48-hour work stoppage that had shutdown 14 major ports stretching from Maine to Texas and stranded billions of dollars worth of trade.
In a news release, the International Longshoremen’s Association that represents the dockworkers and the United States Maritime Alliance that represents employers said they reached a tentative agreement that bolsters wages.
Importantly, the deal extends a current contract until January 15, 2025, giving both sides time to return to the bargaining table and hammer out a new, multiyear collective agreement.
The strike was the first major shutdown of ports along the U.S. East Coast since 1977 and was costing the American economy an estimated $5 billion U.S. a day.
Terms of the pay raise were not disclosed. However, union representatives said previously that they were demanding an increase of $5 U.S. per hour for each year of a new six-year contract.
Business leaders and companies such as General Motors (GM) had been calling for a quick end to the strike.
There was political pressure on U.S. President Joe Biden to intervene in the work stoppage, although the pro-labour head of the government refused to do so.