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US Port Workers and Operators Reach Deal

U.S. dock workers and port operators have reached a tentative agreement that will immediately end the three-day strike, which had disrupted shipping along the East and Gulf Coasts. The deal includes a wage increase of approximately 62% over six years, according to two sources familiar with the matter. This would raise the average hourly wage from $39 to around $63.

The International Longshoremen’s Association (ILA) had initially demanded a 77% wage increase, while the United States Maritime Alliance (USMX) had previously offered a nearly 50% hike. The strike, the largest work stoppage of its kind in nearly half a century, had blocked the unloading of container ships from Maine to Texas and threatened the supply of goods such as bananas and auto parts, leaving numerous ships anchored outside major ports.

Both sides stated that the master contract would be extended until January 15, 2025, allowing further negotiations on unresolved issues. Among these issues is the growing automation of port operations, which workers argue could lead to job losses.

U.S. President Joe Biden praised the agreement as a significant step towards a stable contract. His administration had been actively involved in the negotiations to help reopen the ports and restore normal shipping operations.

The resolution is seen as a victory for both parties, ensuring that the ports are back in operation and supply chains are stabilized.

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