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First, the good news. After just a couple of days, ports on the East Coast will open up again to full capacity. The International Longshoremen’s Association has reached a tentative agreement with the US Maritime Alliance to end a strike, after the latter sweetened its offer on wages to split the difference with the union.
What’s the bad news? The strike is merely suspended:
U.S. ports reopened after dockworkers agreed to return to work, ending a three-day strike that threatened to disrupt the American economy just weeks ahead of the presidential election.
The breakthrough Thursday came after port employers offered a 62% increase in wages over six years, according to people familiar with the matter. .
The new offer, up from an earlier proposed raise of 50%, came after the White House privately and publicly pressed the large shipping lines and cargo terminal operators who employ the longshore workers to make a new offer to the union.
The White House put pressure on to get ports reopened before the strike did noticeable economic damage. The union wanted a 77% increase in wages, so the 62% is pretty close to an even split between the positions between management and labor.
