The union representing thousands of dockworkers across the US has agreed to suspend its strike while negotiations continue.
Members of the International Longshoremen’s Association (ILA) walked out on Tuesday at 14 major ports in the East and Bay Area, halting container traffic from Maine to Texas.
The union says it has reached a temporary agreement on wages and will go back to work on Friday until January 15, when they will return to the bargaining table to negotiate “all other outstanding issues”.
The action is the first such shutdown in nearly 50 years and threatens to spark chaos amid the busy holiday shopping season and the upcoming presidential election.
The ILA was demanding a 77% wage increase, while the employer group – United States Maritime Alliance (USMX) had previously increased its wage increase proposal to nearly 50%.
The affected ports include some of the nation’s busiest ports, including New York, Georgia and Texas. Experts estimate that they handle more than a third of US imports and exports.
Businesses were bracing for the possibility of prolonged closures, which threatened to disrupt global trade and the US economy.
Some companies were increasing supplies as strike warnings circulated over the summer.
Many consumers were also fearful and stockpiled certain supplies such as baby formula and toilet paper.
US President Joe Biden praised the tentative agreement in a statement Thursday evening, saying it “represents important progress toward a stronger agreement”.
“I congratulate the ILA dockworkers who deserve a stronger contract after sacrificing so much to keep our ports open during the pandemic,” Biden said.
“And I commend the port operators and carriers who are members of the U.S. Maritime Alliance for working hard and putting a strong proposal on the table.”
Biden noted the need to open ports to “ensure the availability of critical supplies” to people affected by Hurricane Helene, which has killed more than 200 people in the US southeast.
Under the 2018 contract that expired Monday, dockworkers earned a base hourly wage of $20-$39, plus other benefits including royalties tied to container traffic.
ILA head Harold Daggett demanded that the companies agree to increase the hourly wage by $5 for each year of the contract.
The union, which has about 47,000 active members according to federal filings, is also seeking protections against automation.
