A major disruption to supply chains has been averted after dockworkers and port operators reached a tentative agreement, bringing an end to the recent strike on the East and Gulf coasts. The strike, which had lasted for three days, threatened to severely impact supply chains, especially ahead of the holiday season.
The agreement, according to CNN, addresses key demands from the International Longshoremen’s Association, including a substantial wage increase and improved working conditions. The Wall Street Journal reports that port employers offered a 62% increase in wages over six years as part of the deal.
The agreement also includes a contract extension until January 15, 2025, providing time for both sides to negotiate further issues, such as automation on the docks.
The quick resolution of the strike has defused a potential political risk for the current administration, according to Politico. Dockworkers are expected to resume work on Friday.
