US dockworkers to head back to work after tentative deal

DETROIT

U.S. dockworkers are returning to work after a three-day strike at East and Gulf Coast ports after the union and port operators reached a tentative deal on pay and extended the current contract to January 15, both sides have said. 

The International Longshoremen's Association (ILA) had launched a work stoppage on Oct.2 after negotiations with the United States Maritime Alliance (USMX), which represents shipping companies and terminal operators, hit an impasse.

The strike, which involved 45,000 workers, according to the ILA, paralyzed 36 ports from Maine to Texas, which handle an array of goods from food to electronics.

But on Oct. 3 evening, the two sides announced in a joint statement that they had "reached a tentative agreement on wages and have agreed to extend the Master Contract until Jan. 15, 2025 to return to the bargaining table to negotiate all other outstanding issues.

The statement did not offer terms of the deal, but The Wall Street Journal, citing sources close to the matter, said USMX had proposed a 62 percent salary increase over six years, which allowed the deal to be reached.

The strike was the first walkout by the union since 1977 after negotiations stalled over union demands for significant wage increases and protection against automation-related job loss.

Analysts had cautioned that a lengthy strike could pose a major headwind to the U.S. economy as the presidential election grows near on Nov. 5, leading to shortages of some items and lifting costs at a time when inflation has been moderating.