Docker and longshore workers struck a tentative deal on Wednesday night to avert a damaging strike ahead of a looming January deadline.
“This is a win-win agreement that will create ILA jobs, support American consumers and businesses, and keep the U.S. economy an important hub for global markets,” said the Longshoremen’s Association (ILA). said the United States Maritime Alliance (USMX) in a statement. joint statement on Wednesday evening.
In October, the ILA and USMX failed to reach an agreement on pay increases and protection from automation for dockworkers before their contract expired, resulting in a strike that hit the economy hard. With support from the Biden administration, the two groups agreed to end a three-day strike and give them time until January 15 to negotiate a contract on automation technology.
On Wednesday, both agencies shared that they had concluded ongoing negotiations and reached a tentative agreement on a new six-year contract, averting a work stoppage next week. However, specific details of the transaction will not be made public until members review and approve the documents.
“This agreement protects current ILA jobs, modernizes our East Coast and Gulf Coast ports, makes them safer and more efficient, and creates the capacity needed to keep supply chains strong. It establishes a framework for introducing technology that creates more jobs,'' the ILA said. writes USMX.
Biden's deal, brokered in October, included a 62% wage increase over the next six years.
Automation, which is at the heart of Wednesday's agreement, is generally defined as the use of technology to complete human tasks. Unions argue this will ultimately have a negative impact on jobs.
Workers will continue to operate under the current contract until the ILA meets and schedules a ratification vote, allowing USMX members to ratify the final contract announced Wednesday.
