Longshoremen reach tentative agreement with ports, shippers, averting a potential strike

By James On Jan 9, 2025

U.S. dock workers reached a contract agreement with ports and shippers on Wednesday, averting a potential strike that could have hurt the U.S. economy.

The International Longshoremen’s Association union and the US Maritime Alliance of ports and shipping companies said they had reached a tentative agreement on a six-year contract, a week before the January 15 deadline.

In a joint statement, the two sides said the agreement protects union jobs and allows East and Gulf Coast ports to modernize with new technology, making them safer and more efficient and creating the capacity they need to keep our supply chains strong. ”

They said they are not publicly releasing the details of the agreement to give union and alliance members a chance to review and approve the document.

The dock workers staged a three-day strike in October, suspending the strike after agreeing to a 62% pay increase over six years. But that truce was conditional on reaching an agreement on automation: the union feared that machines – especially semi-automatic cranes – would replace human workers.

The agreement came a day after the two sides resumed negotiations.

A strike would have closed ports along the East Coast and Gulf Coast and hurt the economy if it lasted more than a week, economists said.

“We are pleased to announce that ILA and USMX have reached a preliminary agreement on a new six-year ILA-USMX Master Contract, subject to ratification, which will avoid any work stoppage on January 15, 2025,” the two parties said in a joint statement . statement. “This agreement protects current ILA jobs and creates a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports – making them safer, more efficient and creating the capacity they need to keep our supply chains strong.

“This is a win-win deal that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”