Some 45,000 dockworkers at East and Gulf coast ports are returning to work after their union reached a deal to suspend a strike that could have caused shortages and higher prices if it had dragged on. FOX reporter Kennedy Hayes joined LiveNOW from FOX with the details.
After some 45,000 dockworkers at East and Gulf Coast ports went on a strike that could have caused shortages and higher prices for consumers the longer it went on, a deal was reached to suspend the strike.
The International Longshoremen's Association (ILA) suspended its three-day strike until Jan. 15 to provide time to negotiate a new contract, according to the Associated Press.
The union and the U.S. Maritime Alliance, which represents ports and shipping companies, said in a joint statement that they have reached a tentative agreement on wages.
The ILA went on strike early Tuesday after its contract expired in a dispute over pay and the automation of tasks at 36 ports - which stretched from Maine to Texas. It came at the peak of the holiday season at the ports, which handle about half the cargo from ships coming into and out of the United States, according to the Associated Press.
The union had been demanding a 77% raise over six years, plus a complete ban on the use of automation at the ports, which members see as a threat to their jobs.
Both sides also have been apart on the issues of pension contributions and the distribution of royalties paid on containers that are moved by workers.
The ports increased their wage offer from about 50% over six years to 62%, according to the AP, citing a person briefed on the agreement. The person didn't want to be identified because the agreement is tentative.
Any wage increase would have to be approved by union members as part of the ratification of a final contract.
Next, negotiations will turn to the automation of ports, which the unions has said will lead to fewer jobs, and other sticking points.
"With the grace of God, and the goodwill of neighbors, it's gonna hold," President Joe Biden told reporters Thursday night after the agreement.
The union's membership won't need to vote on the temporary suspension of the strike. Until Jan. 15, the workers will be covered under the old contract, which expired on Sept. 30, the AP reported.
Most retailers had stocked up or shipped items early in anticipation of the strike, but news of the strike also led to reports of some consumers panic-buying at Costco and other retailers.
Amid news of an anticipated port strike, industry analysts said that for everyday dockworkers walk off the job, it takes four to six days to recover.
But they said a short strike of a few days probably wouldn't gum up the supply chain too badly, according to the AP.
After suspending the strike, Biden later applauded both sides "for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding."