A potential strike among union workers along the East and Gulf Coasts has been averted after the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) announced on Wednesday night that they have reached a tentative agreement on all items for a new six-year master labor contract.
The two sides agreed to extend the current contract until the ILA’s full Wage Scale Committee can schedule a ratification vote and USMX members can ratify the terms of the new contract.
The agreement offers workers new protections against automated technology replacing jobs. In addition, the agreement includes a 62 percent wage increase for union workers over the next six years.
The union and shippers agreed to a short-term agreement last October following a three-day strike by union members. However, that agreement was set to expire on January 15. A strike could have shut down all major ports from Maine to Texas had a deal not been reached next week, which would have costing the U.S. economy hundreds of millions of dollars each day.
“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. 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 said in a joint statement.
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued the following statement:
“This tentative contract agreement is great news for red meat exporters and for all of U.S. agriculture. The assurance that there will be no work stoppage at East and Gulf Coast ports eliminates a cloud of uncertainty and bolsters the U.S. industry’s reputation as a reliable supplier of pork, beef and lamb. On behalf of USMEF’s membership, I want to thank the ILA and USMX for reaching this agreement and ensuring the continued movement of cargo.”
Source: U.S. Meat Export Federation (USMEF)
