Dockworkers reach tentative deal to avert damaging strike

Dockworkers and longshoremen struck a tentative deal Wednesday night to avoid a damaging strike ahead of a looming January deadline. 

“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 International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) said in a joint statement on Wednesday evening. 

In October, the ILA and USMX failed to reach an agreement on pay raises and protection from automation for port workers ahead of a contract deadline, resulting in a strike that hit the economy hard. With the help of the Biden administration, the two groups struck a deal to end the three-day strike and give time for contract negotiations regarding automation technology until Jan. 15. 

On Wednesday, the two bodies wrapped up these continued negotiations, sharing that they reached a tentative agreement for a new six-year contract — and avoided a work stoppage next week. However, specific details of the deal will not be released until members can review and approve the document. 

“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 ILA and USMX wrote. 

The Biden administration's deal, brokered in October, included a 62 percent wage increase over the next six years.

Automation, which is at the center of Wednesday's deal, is generally defined as the use of technology to complete human tasks. The union has argued that this will ultimately hurt jobs.

Workers will continue to operate under the current contract until ILA can meet and schedule a ratification vote and so that USMX members can ratify the final contract announced Wednesday.