The union representing tens of thousands of dockworkers across the U.S. has agreed to suspend the strike while negotiations continue.
Members of the International Seafarers’ Association (ILA) marched Tuesday at 14 major ports along the East and Gulf Coasts to halt container shipping from Maine to Texas.
The union said a tentative agreement on wages had been reached and workers would return to work from Friday until January 15. It will then return to the bargaining table to negotiate “all other outstanding issues.”
The move was the first lockdown in nearly 50 years and threatened to cause disruption during the busy holiday shopping season and the upcoming presidential election.
“Immediately, all current work arrangements will be suspended and all work covered by the master agreement will resume,” the ILA and employer group United States Maritime Alliance (USMX) said in a joint statement.
Under the interim agreement, wages will rise by up to 62% over the next six years, BBC News understands.
However, negotiations will continue on a number of outstanding issues, including automation.
The union has been demanding a 77 percent wage increase, and the USMX previously increased its proposed wage increase by nearly 50 percent.
The BBC has contacted the ILA and USMX for comment.
“The brief ILA strike will certainly go down as one of the three most profitable days in labor history,” said Patrick L Anderson, CEO of business consulting firm Anderson Economic Group.
“ILA workers apparently won a 60 percent pay increase after giving up three days of work in a strike that did not cause significant damage to the U.S. economy.”
The strike began on Tuesday after negotiations failed to reach a new six-year contract.
The strike was the ILA’s first major disruption since 1977.
Affected ports included some of the busiest ports in the U.S., including New York, Georgia, and Texas. Experts estimate that they handle more than a third of America’s imports and exports.
U.S. President Joe Biden applauded the tentative agreement in a statement Thursday evening, saying it “represents important progress toward a strong deal.”
“Congratulations to ILA dockworkers, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic,” Biden said.
“And I applaud the port operators and carriers who are members of the US Maritime Alliance for their hard work and strong proposals.”
Biden cited the need to keep ports open to “ensure the availability of critical supplies” for those affected by Hurricane Helen, which killed more than 200 people in the southeastern United States.
The news that business suspensions had been halted was also welcomed by business owners.
“The decision to end the current strike and reopen ports on the East and Gulf Coasts is good news for the nation’s economy,” Matthew Shay, president and CEO of the National Retail Federation, said in a statement. He said.
Businesses were bracing for the possibility of a prolonged shutdown that could disrupt global trade and the U.S. economy.
Some companies were increasing supplies as warnings of strikes spread over the summer.
Many consumers were also scared and stockpiling some items, such as baby formula and toilet paper.
Under the 2018 contract, which expires Monday, longshoremen received a base hourly wage of $20 to $39 as well as other benefits, including royalties related to container transport.
ILA President Harold Daggett demanded that the companies agree to increase hourly wages by $5 per year for the life of the contract.
The union, which has about 47,000 active members, is also seeking protections against automation, according to federal filings.
