An economically crippling strike next week at East and Gulf Coast ports has been averted now that the dockworkers’ union has reached a tentative deal with their employers that resolves the remaining contract sticking point on automated cargo-moving machinery and job security.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) issued a joint statement Wednesday night announcing the tentative agreement on the six-year Master Contract. Details will not be released until USMX employer members and the union’s rank-and-file approve the document negotiated by their leaders.
“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,” the joint ILA-USMX statement said.
“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.”
After tens of thousands of dockworkers went on strike for several days last October, the two sides reached a tentative deal increasing wages 62% over six years, but left issues related to automation and job security unresolved. The union members went back to work under a contract extension that set a Jan. 15 deadline to reach an agreement on remaining issues.
New Jersey’s business community welcomed the news that a tentative contract deal had been reached because a second strike at the ports next week would have halted billions of dollars in trade, disrupted supply chains, and escalated inflationary pressures.
“We are thrilled that ILA and USMX have reached this essential agreement as it appears to not only be a win-win for the sides involved, but also for the businesses and consumers who would have otherwise been greatly impacted by any work stoppage at our ports,” NJBIA President & CEO Michele Siekerka said.
“Our New Jersey ports proudly serve as our gateways to goods that make up our way of life every day,” Siekerka said. “It is critical that our supply chains remain strong and moving. With this agreement set, we can avoid the pandemic-era supply chain backlogs that are only a recent memory and avert businesses from troublesome shipping delays.”
