Dockworkers reach deal to avert port strike
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The union that represents dockworkers on the East and Gulf coasts said Wednesday it reached a deal to avert a strike.
Why it matters: The deal avoids an economically crippling work stoppage that could've started as soon as next week.
The big picture: The International Longshoremen's Association and the United States Maritime Alliance (USMX), which represents shipping companies, announced a tentative six-year agreement that still must be ratified by union members.
- The ports in question are responsible for about half of all the containers coming into and out of the United States.
Between the lines: Automation had been the one sticking point holding up a contract — dockworkers wanted to prevent further use of the technology.
- The parties didn't release details, to allow time for rank-and-file union members and companies in the USMX to review and approve the agreement, they said in their respective announcements.
- A source familiar with the negotiations says the parties agreed the shippers can implement some semi-automation at the ports (like cranes that can be operated remotely), and in return the union gets a guarantee that new jobs would come along with those tech advancements.
- Full automation was off the table, as it was in the previous contract.
What they're saying: "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," they said in a joint statement.
What's next: A vote on the contract has not been scheduled, but won't be imminent.
Editor's Note: This story has been updated with details on the agreement.
