Union and port operators agree on a six-year contract, preserving jobs and ensuring port operations continue
The US dockworkers union and a group of ocean carriers and terminal operators have reached a tentative agreement on a new six-year labour contract, as reported by BNN Bloomberg.
The deal, which is subject to ratification, averts a potential shutdown of ports along the East and Gulf coasts of the United States that was scheduled for January 15, 2025.
In a joint statement on Wednesday, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) announced, “We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025.”
Both sides have agreed to continue operating under the extended terms of their previous contract until union representatives vote and USMX members ratify the final agreement.
This follows the extension of the original contract after a three-day strike in October, which had temporarily shut down every major port on the eastern and southern US coasts.
Negotiations had been stalled since November, when the ILA declared an impasse over the use of semi-automated cargo handling cranes, which the union argued posed a threat to jobs.
USMX, however, defended the technology, stating it is essential for modernising ports and improving efficiency.
The new agreement reportedly guarantees union jobs when implementing certain technologies, including the semi-automated cranes that had been a central point of contention.
Additionally, the deal retains the 62 percent pay raise agreed upon in October and maintains a prohibition on fully automated terminals.
President Joe Biden praised the agreement in a statement on Wednesday night. “I applaud the dockworkers’ union for delivering a strong contract. Their members kept our ports open during the pandemic, as we worked together to unsnarl global supply chains. Thank you to the carriers and port operators who play an essential role in our nation’s economy.”
The agreement brings an end to a heated dispute between the dockworkers union and their employers over technological changes at ports that handle about half of all US container volumes.
Analysts had warned that a strike would have resulted in economic losses of US$1bn to US$5bn per day.
