Port strike called off as agreement is reached
The port strike set to happen on the East Coast next week has been averted after both parties reached an agreement.
NEW YORK – The port strike set to happen on the East Coast next week has been averted after both parties reached an agreement.
In a joint statement released late last night, the International Longshoreman’s Assn. and U.S. Maritime Alliance said a compromise was reached on all items for a new six-year master contract.
“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,” the statement reads. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The statement said details of the new tentative agreement will not be released, to allow ILA rank-and-file-members and USMX members to review and approve the final document.
The agreement covers 25,000 union workers across 14 ports from Texas to New York and Boston.
According to FreightWaves, both sides got what they wanted. Port employers and ocean carriers got the greenlight to introduce “semi-automated” rail-mounted cranes and other technology, while workers got “guaranteed” new jobs linked to that machinery.
The agreement follows the tentative agreement reached early October guaranteeing workers a 62% increase in wages over six years. If this new agreement wasn’t reached by Jan. 15, tens of thousands of dockworkers would have gone on strike, shutting down ports.
Retailers hailed the news.
“We are pleased to see the ILA and USMX come to a final agreement on a new contract, as U.S. ports on the East and Gulf Coasts play a critical role in the retail supply chain,” said Jonathan Gold, vice president of supply chain and customs policy for the National Retail Federation, in a statement. “Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers.
“The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain.”
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