The union representing some 45,000 U.S. dockworkers reached a tentative agreement with port employers on Wednesday, averting a strike at East Coast and Gulf ports later this month.
In a joint statement, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced that they had reached agreement on a six-year framework contract, which gives the latter the possibility of ratifying the terms of the final contract.
“We are pleased to announce that ILA and USMX have reached an agreement in principle on a new six-year ILA-USMX master contract, subject to ratification, thus avoiding any work stoppage on January 15, 2025,” said both parties 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 Coast and Gulf ports, making them safer and more efficient and creating the capacity they need to keep our supply chains strong.”
Details of the tentative agreement will be withheld to allow ILA rank-and-file members to review and approve the final document.
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“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy at the center of the global marketplace,” both sides added.
The two parties signed a tentative agreement in October – which gave workers a 62% pay increase over six years – to end a three-day strike, but did not resolve issues over automation .
But the two sides were still at an impasse over automation heading into the latest round of negotiations. If no agreement was reached and a second strike were to take place, the pay deal agreed in principle and which ended the first strike would be taken off the table and both sides would be back to square one.
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President Biden applauded the deal Wednesday evening.
“Collective bargaining plays an important role when it comes to building a strong economy from the ground up and up,” he said. “Today’s tentative agreement between the International Longshoremen’s Association and the United States Maritime Alliance shows that labor and management can come together to benefit workers and their employers.”
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“I applaud the longshore union for reaching a strong contract,” Biden continued. “Their members kept our ports open during the pandemic, as we worked together to unlock global supply chains. Thank you to the carriers and port operators who play a vital role in our country’s economy.
Breck Dumas of FOX Business contributed to this report.