Lisa Bertlein
(Reuters) – A union representing 45,000 dockworkers in the eastern United States and the Gulf Coast and their employers said on Wednesday they had reached a preliminary agreement on a new six-year contract, preventing further strikes that could strain supply chains and cause damage. US economy.
The International Longshoremen’s Association (ILA) and the employers group United States Maritime Alliance (USMX) called the agreement a “win-win” in a joint statement. The deal includes an automation solution, which was the most difficult issue on the negotiating table.
“This agreement protects ILA’s existing jobs and sets the stage for the deployment of technologies that will create more jobs while modernizing East Coast and Gulf Coast ports, making them safer and more efficient, and building the capacity needed to keep our supply chains strong.” , – the group said.
Terms of the deal were not disclosed. The ILA and USMX have agreed to continue working under the existing contract until the contract is ratified.
Negotiations were extended until January 15 to finalize the automation deal. Shipping industry executives, customers and analysts were concerned the parties would be unable to break the impasse, leading to a second ILA strike just days before President-elect Donald Trump’s Jan. 20 inauguration.
A three-day ILA strike in October triggered rising shipping prices and cargo delays at the 36 affected ports. Longshoremen have returned to work after employers agreed to a 62% pay rise over the next six years.
Employers at ports stretching from Maine to Texas include terminal operators such as APM, owned by Danish container carrier Maersk, as well as the U.S. units of other major carriers such as China’s COSCO Shipping and Switzerland’s MSC.
National retail (NYSE:) Federation, which represents large clients such as Walmart (NYSE:) and Target (NYSE:), said the agreement should restore confidence in shipping by reducing the risk of disruptions at East Coast and Gulf Coast ports, through which more than half of U.S. container imports pass.
“The agreement will also pave the way for much-needed modernization efforts that are essential to the future growth of these ports and the overall resiliency of our nation’s supply chain,” said Jonathan Gold, NRF vice president of supply chain and customs policy.