The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) employer group has reached an agreement. The deal includes a resolution in automation, which had been the thorniest issue of on the table. The union representing 45,000 dock workers on the U.S. East and Gulf Coasts and their employers on Wednesday said they reached a tentative deal on a new six-year contract, averting further strikes that could have snarled supply chains and taken a toll on the U.S. economy, ET Infra reports.
The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) employer group, in a joint statement, called the agreement a "win-win." The deal includes a resolution in automation, which had been the thorniest issue of on the table.
"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 creating the capacity they need to keep our supply chains strong," the groups said.
Terms of the deal were not disclosed. ILA and USMX have agreed to continue operating under the current contract until the contract is ratified.
The talks had been extended until January 15 to hammer a deal on automation. Shipping industry executives, customers and analysts had been concerned that the parties would be unable to overcome their impasse, leading to a second ILA strike just days before President-elect Donald Trump's January 20 inauguration.
A three-day ILA strike in October had triggered a surge in shipping prices and cargo backlogs at the 36 affected ports. Longshoremen returned to work after employers agreed to a 62% wage increase over the next six years.