The union representing 45,000 East Coast and Gulf Coast dockworkers and a group representing employers will resume negotiations next month toward reaching a new six-year contract ahead of a Jan. 15 deadline, they said.

The International Longshoremen’s Association union agreed to end a three-day strike on Oct. 3 after it won agreement for a 62% wage hike over six years with the United States Maritime Alliance employer group after significant involvement by the White House and other Biden administration officials.

The work stoppage was the first large-scale strike at East and Gulf coast ports in nearly 50 years, briefly halting the flow of about half the country’s ocean shipping.

The negotiating committees will meet in New Jersey next month, both sides said in a joint statement, aiming to agree on terms that can be presented to workers for approval.

They jointly said they want to get a new agreement in place as soon as possible but would not discuss any issues prior to resumption of the negotiations.

The key outstanding issue remains the use of automation at the ports, officials told Reuters. The Biden administration is concerned about the prospect of a new work stoppage next year, a senior official said.

The union earlier demanded the employer group stop port automation projects that it says threaten jobs.

The tentative deal announced earlier this month would raise average wages to about $63 an hour from $39 an hour over the life of the contract. That is contingent on the rest of the issues being resolved.

The union had been seeking a 77% raise, while the employer group had previously raised its offer to a nearly 50% hike.

Source: Reuters