SAVANNAH, Ga. - Operations at Georgia's ports in Savannah and Brunswick will resume on Friday morning following the tentative agreement that suspended the ongoing dockworker strike.
The union, the International Longshoremen’s Association, which represents 45,000 dockworkers across the country, reached a deal on Thursday to pause the three-day strike until Jan. 15 to provide time to negotiate a new contract.
The temporary end to the strike came after the union and the U.S. Maritime Alliance, which represents ports and shipping companies, reached a tentative agreement on wages, the union and ports said in a joint statement.
A person briefed on the agreement said the ports sweetened their wage offer from about 50% over six years to 62%. The person didn’t want to be identified because the agreement is tentative. Any wage increase would have to be approved by union members as part of the ratification of a final contract.
Shipping containers and cranes at the Port of Savannah in Savannah, Georgia, US, on Saturday, Sept. 9, 2023. (Elijah Nouvelage/Bloomberg via Getty Images)
The union went on strike early Tuesday after its contract expired in a dispute over pay and the automation of tasks at 36 ports stretching from Maine to Texas. The strike came at the peak of the holiday shopping season at the ports, which handle about half the cargo from ships coming into and out of the United States.
If the strike lasted more than a few weeks, the country could have had shortages of goods on store shelves, though most retailers had stocked up in anticipation of the labor action.
Until Jan. 15, union workers will be covered under the old contract, which expired on Sept. 30.
In Georgia, the state says its ports will resume operations with truck gates opening at 6 a.m. at the Garden City Terminal and 8 a.m. at the Ocean Terminal.
Gates for vessel operations will begin reopening between 8 a.m. and 1 p.m., officials say. Rail operations should start an hour before that.
"The Georgia Ports Authority, Gateway Terminals and the ILA look forward to reopening our facilities and providing the world-class service the Port of Savannah and the Port of Brunswick are known for," a spokesperson for the Georgia Ports Authority told FOX in a statement.
Political concerns over port strike
This browser does not support the Video element.
What the ports strike means to you
The longshoreman strike has shut down docks all along the east coast. Georgia has some of the busiest ports in the world. The work stoppage could snarl supply chains.
The settlement pushes the strike and any potential shortages past the November presidential election, eliminating a potential liability for Vice President Kamala Harris, the Democratic nominee. It’s also a big plus for the Biden-Harris administration, which has billed itself as the most union-friendly in American history. Shortages could have driven up prices and reignited inflation.
Thursday’s deal came after administration officials met with foreign-owned shipping companies before dawn on Zoom, according to a person briefed on the day’s events who asked not to be identified because the talks were private. The White House wanted to increase pressure to settle, emphasizing the responsibility to reopen the ports to help with recovery from Hurricane Helene, the person said.
Acting Labor Secretary Julie Su told them she could get the union to the bargaining table to extend the contract if the carriers made a higher wage offer. Chief of Staff Jeff Zients told the carriers they had to make an offer by the end of the day, so a man-made strike wouldn’t worsen a natural disaster, the person said.
By midday, the Maritime Alliance members agreed to a large increase, bringing about the agreement, according to the person.