The International Longshoremen’s Association agreed to suspend its strike on Thursday after port employers offered an improved wage, The New York Times reported.
Talks are continuing, but the Times reported that employers that were represented by the United States Maritime Alliance offered to increase wages by 62% over the course of a six-year contract, a person familiar with the negotiations told the news outlet.
“The new offer, up from an earlier proposed raise of 50%, came after the White House privately and publicly pressed the large shipping lines and cargo terminal operators who employ the longshore workers to make a new offer to the union,” The Wall Street Journal reported.
The agreement extends the prior contract through January 15, 2025, while the two sides continue to negotiate on other issues, the Journal wrote.
While many businesses anticipated the strike and accelerated imports prior to the walkout, a long strike could have led to shortages and was already beginning to cause congestion in supply chains, the Times reported.
Prior to the walkout, Griff Lynch, CEO of the Georgia Ports Authority, told the Associated Press in an interview that every day of a port strike could take up to a week to clear up once union workers return to their jobs.
According to The Guardian, “Among the outstanding issues left in the contract that will be negotiated before the current contract extension until 15 January is the union’s seeking improved protections against automation in ports. The union opposes the introduction of automation that would result in any job losses.”