NEW YORK (Diya TV) — A tentative agreement has been reached between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), and unionized dockworkers have agreed to a new collective bargaining agreement that includes key wage increases and extends their contract. The agreement will bring an end to the dockworkers’ port strike that delayed operations on the U.S. East and Gulf coasts for days as shipments got backed up and shippers who were affected by the walk-out began to apply mounting pressure to end the strike.

More than 45,000 unionized dock workers walked off the job in the largest U.S. strike in 20 years, which affected 36 ports across 14 states, including major hubs in New York, New Jersey, Texas and Florida. The ILA strike, the first one in five decades, will cause dire long-term disruptions to U.S. supply chains, especially ahead of the busy holiday shipping season, analysts said.

The ILA and USMX said Thursday evening that they have reached a tentative deal, which will include a significant wage boost. While the deal is still in the process of being finalized, early reports had been that the agreement was likely to include pay for workers over some period of years. Apart from the pay hike, it is expected to extend the current master contract until January 2025, which will give both parties more time to settle any outstanding disputes on automation as well as worker protections.

President Biden, who had called on both sides to restart talks, celebrated the deal, saying, “This is a win for workers, for employers, and for the entire U.S. economy.” The Biden administration faced mounting pressure to end the situation as it threatened to become a campaign matter in advance of the 2024 general election.

The strike had crippled container handling, cargo movement and ro-ro services, critical to industries ranging from consumer goods to automotive parts. In the days leading up to an agreement, some analysts warned that prolonged labor action could cost the US economy billions of dollars. Retailers, for one, were worried about delays in the delivery of goods to stores, putting them in jeopardy for the holiday season.

And even as that tentative agreement awaits ratification by the rank-and-file union membership, bargaining on other provisions of the contract will continue. But it’s also bringing workers back to the ports, and that ends the immediate crisis.

“Both sides came together in good faith and we’re hopeful this deal brings long-term stability to the ports,” said an ILA spokesperson.