US port workers and operators reach deal to end East Coast strike immediately
The union and the port operators said in a statement that they would extend their master contract until Jan 15, 2025 to return to the bargaining table to negotiate all outstanding issues.
“Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” the statement said.
Among key issues that remain unresolved is automation that workers say will lead to job losses.
Union boss Harold Daggett said previously that employers such as container ship operator Maersk and its APM Terminals North America had not agreed to demands to stop port automation projects that threaten jobs.
US President Joe Biden’s administration had sided with the union, putting pressure on the port employers to raise their offer to secure a deal and citing the shipping industry’s bumper profits since the COVID-19 pandemic.
The tentative deal “represents critical progress towards a strong contract”, Biden said on Thursday. “Collective bargaining works,” he added.
His administration has repeatedly resisted calls from business trade groups and Republican lawmakers to use federal powers to halt the strike – a move that would undermine Democratic support among unions ahead of the Nov 5 presidential election.
The White House had been heavily involved in talks to get a deal, sources said.
After days of talks, White House Chief of Staff Jeff Zients convened a 5.30am (9.30am GMT) virtual meeting on Thursday with the CEOs of ocean carriers and impressed upon them the need to reopen the ports to speed hurricane recovery efforts, according to a source briefed on the events.
The port strike hit just as southeastern states were struggling for supplies following a deadly hurricane.
Top White House economic adviser Lael Brainard told the carriers at the meeting they needed a new offer to end the strike, and asked them to put a new offer on the table. By midday the shippers had agreed to make a new higher offer.
Acting Secretary of Labor Julie Su told the carriers they could get the union to the table and leaders would agree to extend the contract, if the new offer was higher. She was in New Jersey to meet with union leaders to secure their agreement, the sources said.
