The union representing tens of thousands of dock workers across the United States agreed to suspend the strike while negotiations continue.
Members of the International Longshoremen’s Association (ILA) on Tuesday went on strike at 14 major ports along the East and Gulf Coasts, halting container shipping from Maine to Texas.
The union said it has reached a preliminary agreement on wages and will return to work on Friday until January 15, when it will return to the bargaining table to negotiate “all issues There are other outstanding issues”.
The move marks the first such closure in nearly 50 years and threatens to cause chaos during the busy holiday shopping season and upcoming presidential election.
“Effective immediately, all current work activities will cease and all Work under the Main Contract will continue.
The union has called for a 77% pay increase, while USMX had previously increased its wage increase offer by nearly 50%.
The strike began on Tuesday after negotiations failed to produce a new six-year contract.
The strike, involving tens of thousands of workers, was the ILA’s first major shutdown since 1977.
The affected ports include some of the nation’s busiest, including New York, Georgia and Texas. They are estimated by experts to handle more than one-third of America’s imports and exports.
Businesses have been preparing for the possibility of a prolonged shutdown, which threatens to disrupt global trade and the US economy.
Some companies boosted supplies amid warnings of strikes over the summer.
Many consumers are also afraid and are hoarding some items such as baby formula and toilet paper.
US President Joe Biden welcomed the tentative agreement in a statement Thursday night, saying it “represents important progress towards a strong contract”.
“I congratulate ILA dockworkers, who deserve a good contract after sacrificing so much to keep our ports open during the pandemic,” Biden said.
“And I applaud the port operators and carriers that are members of the U.S. Maritime Alliance for their hard work and strong offers.”
Biden noted the need to open ports to “ensure the availability of critical supplies” to those affected by Hurricane Helene, which killed more than 200 people in the Southeast United States.
Under the 2018 contract, which expired on Monday, dock workers earned a base hourly wage of $20-39, as well as other benefits, including royalties related to container traffic.
Harold Daggett, head of the ILA, asked companies to agree to increase hourly wages by $5 for each year of the contract.
The union, which has about 47,000 active members according to federal records, is also seeking protections against automation.
