The union representing 45,000 dock workers on the US East and Gulf Coasts and their employers on Wednesday said they reached a tentative deal on a new six-year contract, averting further strikes that could have snarled supply chains and taken a toll on the US economy.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) employer group, in a joint statement, called the agreement a “win-win.”
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The deal includes a resolution in automation, which had been the thorniest issue of on the table.
“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong,” the groups said.
Terms of the deal were not disclosed.
ILA and USMX have agreed to continue operating under the current contract until the contract is ratified.
The talks had been extended until Jan. 15 to hammer a deal on automation.
Shipping industry executives, customers and analysts had been concerned that the parties would be unable to overcome their impasse, leading to a second ILA strike just days before President-elect Donald Trump’s Jan. 20 inauguration.
A three-day ILA strike in October had triggered a surge in shipping prices and cargo backlogs at the 36 affected ports. Longshoremen returned to work after employers agreed to a 62% wage increase over the next six years.
Employers at the ports stretching from Maine to Texas include terminal operators like APM, owned by Danish container carrier Maersk, as well as the US arms of other major carriers like China’s COSCO Shipping and Switzerland’s MSC.
The National Retail Federation, which represents major customers like Walmart and Target, said the agreement should bring certainty back to ocean shipping by reducing the risk of disruptions at East and Gulf Coast ports that handle more than half of US container imports.
“The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy.
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