Oct 04, V7N -U.S. dock workers and port operators have reached a tentative agreement to end a three-day strike that disrupted shipping along the East and Gulf Coasts. The deal includes a 62% wage hike over six years, raising average hourly wages from $39 to $63. The International Longshoremen's Association (ILA) had initially demanded a 77% raise, while the employer group, United States Maritime Alliance (USMX), had previously offered a nearly 50% increase.

This strike, the biggest in nearly 50 years, impacted 36 ports from Maine to Texas, delaying shipments of various goods and causing a backlog of anchored ships. The agreement also extends the master contract until January 2025 to resolve other issues, including automation concerns that could affect jobs.

President Joe Biden’s administration played a significant role in pressuring employers to offer a more competitive deal, emphasizing the shipping industry's pandemic-era profits. The strike also coincided with supply shortages in southeastern states following a hurricane, prompting urgency in reaching a resolution.

While the deal brings immediate relief, outstanding issues like automation still need to be addressed, and further negotiations are set to take place. Economists noted that the strike could have cost the U.S. economy $5 billion per day had it continued, though immediate price impacts were mitigated by pre-strike shipment accelerations.

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