Ports Rush to Reopen After First Major Strike in Decades Is Suspended

Days after tens of thousands of longshoreman along the East and Gulf Coasts walked out, their union and their bosses reached a tentative agreement on wages.

Hours after a longshoremen’s union on the East and Gulf Coasts agreed to suspend its strike, major ports rushed to reopen on Friday and get cargo to businesses that have spent the last few days racked with fear over lost sales.

The strike, which began on Tuesday and shut down many of the nation’s largest shipping hubs, threatened to weaken the economy weeks ahead of a national election. The Biden administration spent the last few days pressing the United States Maritime Alliance, the group representing port employers, and the union, the International Longshoremen’s Association, to find a way to end the strike.

The two sides announced late Thursday that they had reached a tentative agreement on wages — a 62 percent increase over six years — and said they were extending the current contract until mid-January to negotiate other issues. The biggest remaining one is the use of automated machinery at the ports, which the I.L.A. considers a job killer. It was the first full-scale stoppage at East and Gulf Coast ports since 1977.

Labor experts say the I.L.A. has more leverage in contract negotiations than unions in most other industries, because a walkout can shut down shipping facilities for which there are no practical alternatives. Labor experts said the wage increase was a big victory for the I.L.A. and its combative president, Harold J. Daggett, a 78-year-old, third-generation dockworker.

“The I.L.A. seized the moment,” said William Brucher, an assistant professor at the Rutgers School of Management and Labor Relations. “Things really aligned in their favor.”

Analysts said the strike was unlikely to lead to higher prices for consumers. Many businesses, anticipating the walkout, sped up their shipments so they could receive them before this week, softening the blow for many.