US mariners reached a contract agreement with ports and shipyards on Wednesday, averting a potential strike that could have hurt the American economy.
The International Longshoremen’s Association union and the Maritime Alliance of US ports and shipping lines said they had reached a tentative agreement on a six-year contract, a week before a January 15 deadline.
In a joint statement, the two sides said the deal protects union jobs and allows East and Gulf Coast ports to modernize with new technology, “making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.” ”
They said they are not releasing details of the deal publicly to allow union and alliance members to review and approve the document.
The land workers went on strike for three days in October, which was called off after agreeing to a 62% pay rise over six years. But that truce was conditional on reaching an agreement on automation: the union was worried that machines — especially semi-automated cranes — would replace human workers.
The agreement was reached a day after the two sides resumed negotiations.
A strike would shut down ports on the East and Gulf coasts and begin to hurt the economy if it lasted much longer than a week, economists said.
“We are pleased that the ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thereby avoiding any work stoppage on January 15, 2025,” the two sides said in a joint statement. statement “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports, making them safer and more efficient, and building the capacity they need to keep our supply chains strong.
“This is a win-win deal that creates ILA jobs, supports American consumers and businesses, and keeps the American economy a key hub in the global marketplace.”
