By Lisa Baertlein
(Reuters) -The union representing 45,000 dockworkers on the U.S. East and Gulf coasts and their employers said on Wednesday they had reached a tentative agreement on a new six-year contract, avoiding new strikes that could have paralyzed operations. supply chains and have charged a price. the American economy.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) business group, in a joint statement, called the agreement “win-win.” The agreement includes a resolution on automation, which had been the thorniest issue on the table.
“This agreement protects current ILA jobs and establishes a framework to implement 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 maintain our supply chains strong,” the groups said. saying.
Terms of the agreement were not disclosed. ILA and USMX have agreed to continue operating under the current contract until the contract is ratified.
Talks were extended until January 15 to reach an agreement on automation. Shipping industry executives, customers and analysts worried that the sides would not be able to overcome their impasse, leading to a second ILA strike just days before President-elect Donald Trump’s inauguration on January 20. .
A three-day strike by the ILA in October caused a rise in shipping prices and loading delays at the 36 affected ports. Dockers 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 ship Maersk, as well as the U.S. arms of other large shippers such as China’s COSCO Shipping and Switzerland’s MSC.
He National Retailer (NYSE:) Federation, which represents major clients such as Walmart (NYSE:) and Aim (NYSE:), said the deal should return certainty to shipping by reducing the risk of disruptions at East Coast and Gulf ports that handle more than half of U.S. container imports.
“The agreement will also pave the way for much-needed modernization efforts, which are essential to the future growth of these ports and the overall resilience of our nation’s supply chain,” said Jonathan Gold, vice president of supply chain and customs policy. from NRF.