Dockworkers' union, employers avert strike after reaching tentative deal
The six-year tentative agreement protects jobs and establishes framework for implementing new technologies
Automation is 'the real issue' for dockworkers: Rep. Michael Rulli
Rep. Michael Rulli, R-Ohio, reacts to a tentative deal for port workers and Tim Walz saying he's a 'knucklehead' over his previous Tiananmen Square claims. (Courtesy: CBS News)
The labor union representing some 45,000 U.S. dockworkers reached a tentative agreement with port employers on Wednesday, averting a strike at East and Gulf Coast ports later this month.
In a joint statement, the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) announced they reached an agreement on a six-year Master Contract, which gives the latter the ability to ratify the terms of the final 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 January 15, 2025," the two sides said in a joint statement. "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 details of the tentative agreement will not be released in order to allow ILA rank-and-file members to review and approve the final document.
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BALTIMORE, MARYLAND - OCTOBER 01: The Port of Baltimore is seen as longshoremen with the International Longshoremen’s Association’s (ILA) walk off the job on October 01, 2024 in Baltimore, Maryland. Dockworkers at 14 major ports on the East Coast and (Photo by Kevin Dietsch/Getty Images / Getty Images)
"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 two sides added.
Both parties signed a tentative deal in October — which gave workers a 62% wage hike over six years — to end a three-day strike, but left issues related to automation unresolved.
But the two sides were still at an impasse over automation leading into the most recent round of negotiations. If a deal had not been reached and a second strike were to happen, the wage agreement agreed to in principle that ended the first strike would be taken off the table, and both sides would be back at square one.
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NEW YORK, NEW YORK - OCTOBER 02: A container ship sits anchored in New York Harbor as it waits for the Port of Newark to re-open after members of the International Longshoremen’s Association, or ILA, began walking off the job yesterday at 12:01 a.m. (Photo by Spencer Platt/Getty Images / Getty Images)
President Biden applauded the deal on Wednesday evening.
"Collective bargaining plays an important role when it comes to building a strong economy from the middle out and the bottom up," he said. "Today’s tentative agreement between the International Longshoremen's Association and the United States Maritime Alliance shows that labor and management can come together to benefit workers and their employers."
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"I applaud the dockworkers’ union for delivering a strong contract," Biden continued. "Their members kept our ports open during the pandemic, as we worked together to unsnarl global supply chains. Thank you to the carriers and port operators who play an essential role in our nation’s economy."
FOX Business’ Breck Dumas contributed to this report.