A major port strike has been averted after the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) reached a tentative agreement on a new six-year contract.
The deal, announced on Wednesday, prevents a work stoppage that could have shut down all major East and Gulf Coast ports next week, potentially crippling supply chains and causing substantial economic losses. The agreement, which still requires ratification by union members, includes new protections for workers and wage increases while allowing for limited automation at the ports.
The potential strike, which had been looming ahead of a January 15 deadline, would have affected ports from Maine to Texas, with estimates suggesting the economy could have lost billions of dollars a day. The main points of contention in the negotiations had centered around automation, which the union feared would lead to job losses. While the deal does not allow for fully automated technology, it includes provisions for semi-automated technology, such as cranes that perform some tasks without human labor. However, the agreement ensures that jobs will be added alongside the new technology, with specific roles tied to the use of these innovations.
In addition to addressing automation concerns, the tentative deal includes substantial wage increases for longshoremen, amounting to a 62% increase over the six-year term. This comes after earlier agreements that raised wages by 10% in the first year of negotiations.
The agreement has been hailed as a “win-win” by both the union and the employers, who believe it will modernize ports, enhance efficiency, and create additional jobs. Both sides have emphasized the importance of keeping American ports competitive and the broader economy strong. The deal also comes after President-elect Donald Trump expressed support for the union, particularly in opposition to the push for automation.
The Washington Post, CNN, and CNBC contributed to this report.
