US longshore workers reached contract agreements with ports and shippers on Wednesday, averting a potential strike that could damage the US economy.
The International Longshoremen's Association union and the American Maritime Alliance of port and shipping companies announced they had reached a tentative agreement on a six-year contract, one week ahead of the Jan. 15 deadline.
In a joint statement, the two countries said the agreement will protect union jobs, allow ports on the East Coast and Gulf Coast to modernize with new technology, and “improve port safety and efficiency; “It will create the capacity we need to keep our supply chains strong.” ”
They said they would not make details of the agreement public to give union and alliance members a chance to review and approve the document.
Longshore workers went on a three-day strike in October and called it quits after agreeing to a 62% wage increase over six years. However, the ceasefire was conditional on reaching an agreement on automation. Unions were concerned that machines, especially semi-automatic cranes, would replace human workers.
Economists said if the strike had lasted more than a week, ports along the East and Gulf coasts would have been closed and would have begun to damage the economy.
“We are pleased to announce that ILA and USMX have reached a preliminary agreement on a new six-year ILA-USMX Master Agreement, subject to ratification, which will avoid a work stoppage on January 15, 2025. ”, the two sides said in a joint document. statement.
“This agreement will protect current ILA jobs, modernize our East Coast and Gulf Coast ports, make them safer and more efficient, and create the capacity we need to keep our supply chains strong. while establishing a framework for introducing technology that creates more jobs.
“This is a win-win agreement that will create ILA jobs, support American consumers and businesses, and keep the U.S. economy a vital hub in global markets.”
