US dockworkers, employers reach deal to avert strike

A US dockworkers union reached a tentative deal on a new labor contract with a group of ocean carriers and terminal operators that, if ratified would avoid a shutdown of East and Gulf coast ports next week.

“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 Jan. 15, 2025,” the International Longshoremen’s Association and US Maritime Alliance said in a joint statement on Wednesday.

The two sides agreed to continue operating under their contract — which was extended after a three-day strike in October shut every major port the eastern and southern coasts of the US — until the union representatives can vote, and USMX members can ratify the terms of the final contract.

The union and employer group had not bargained since November, when the ILA declared an impasse over semi-automated cargo handling cranes they said were a threat to union jobs. USMX maintained that new technology, like the cranes, is essential for port modernization and efficiency.

The new agreement would guarantee union jobs when certain technologies are implemented and includes — but is not limited to —the semi-automated cranes that had been a public focal point since November, according to a person familiar with the negotiations. The deal also preserves the 62% pay raise agreed to in October and continues to bar fully automated terminals.

“I applaud the dockworkers’ union for delivering a strong contract,” President Joe Biden said in a statement on Wednesday night. “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.”

A deal would mark the end of a contentious fight between the dockworker union and their employers over how certain technology can be implemented at the ports, which handle roughly half of all US container volumes. A strike would have resulted in between $1 billion to $5 billion in lost activity each day, according to various forecasts.

— By Laura Curtis (Bloomberg)