Port workers and operators said they reached a tentative deal late Wednesday that would avert another strike at Gulf and East coast ports next week.
In October, the United States Maritime Alliance (USMX), which represents employers at the East and Gulf Coast ports, and the International Longshoremen’s Association (ILA) ended a three-day strike with a tentative agreement for a 62% wage increase for ILA members over the next six years and an extension to Jan. 15 to negotiate terms for automation. With the deadline just a week away, the two sides met this week for the first time since November to hammer out a deal over that last contentious sticking point.
The deal prevents a strike next week that had the potential to snarl supply chains and create shortages, delays and higher prices on hundreds of goods. More than half of shipping containers pass through the 36 ports stretching from Maine to Texas. USMX said ILA workers would continue to work under their current contract until the new six-year contract can be ratified.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace,” the USMX and ILA said in a joint statement.
Why was automation contentious?
Employers argued automation upgrades would make the ports more efficient and able to handle more cargo, which would benefit everyone, but union leaders said it would cost jobs and harm national security.
