US docks dispute set to end

The shutdown halted imports worth $1bn a day

Dockers on the US west coast have reached an agreement with port employers that looks set to end a bitter dispute that caused a crippling 10-day shutdown of the docks.

The six year deal was reached late on Saturday.

This agreement is good for workers, good for employers and it's good for America's economy

President George W Bush

The agreement represents a compromise between the International Longshore and Warehouse Union and the port employers' Pacific Maritime Association.

Asian economies have been hit hard by the dispute, as car makers were forced to ship parts by air, adding to production costs

The US west coast ports are vital for exports from Asia Pacific countries, many of which have only recently shaken off recession.

No worry

The agreement allows employers to introduce labour-saving technology on the docks, while giving the 10,500-member union wage and pension increases.

"The fact that it is for six years provides stability for the nation," said Federal Mediator Peter Hurtgen.

"We don't have to worry about shutdowns and slowdowns at the ports."

The deal has yet to be ratified, but union leaders have called on the dockers to back the proposal when it goes up for a vote among dock workers.

Both sides planned to discuss the agreement further at a news conference on Sunday.

President 'pleased'

President George W Bush welcomed the agreement.

"I am very pleased that labour and management have reached an agreement concerning the west coast ports," Bush said in a statement.

"This agreement is good for workers, good for employers and it's good for America's economy."

The west coast docks handle about $300 billion worth of goods each year and disruptions can affect world financial markets.

The 10-day lockout by the employers in September and October froze billions of dollars worth of US trade.

The Bush administration was forced to invoke the 1947 Taft-Hartley Act to re-open the ports after the dispute halted imports worth about $1bn a day.