Dockworkers on the U.S. East and Gulf coasts have overwhelmingly approved a six-year contract, avoiding a strike that could have severely impacted the economy.
Overwhelming Support for the Contract
Nearly 99% of rank-and-file members voted in favor of the agreement. This follows a tentative deal reached in January between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance of ports and shipping companies. The alliance approved the deal last month, which paved the way for Tuesday’s vote.
Wage Increases and Labor Peace
The contract includes a 62% pay increase over six years, raising hourly wages for top-level union workers from $39 to $63 per hour. ILA President Harold Daggett, who also served as the union’s lead negotiator, praised the agreement. He described it as “the ‘gold standard’ for dockworker unions globally” and emphasized that the difficult negotiations, which included a three-day strike last fall, led to a positive outcome. “We now have labor peace for the next six years,” he remarked.
Addressing Automation Concerns
One of the most contentious issues in the negotiations was automation. While the union worried that machines, especially semi-automated cranes, would replace human workers, port operators and shipping companies argued that U.S. ports were falling behind more automated counterparts in cities like Rotterdam, Dubai, and Singapore.
The new contract strikes a balance. It grants ports more flexibility to introduce technology but ensures that new workers will be hired when changes occur. Importantly, full automation is not on the table.
Experts Weigh In on the Deal
According to Brian Lynch, a leader in the transportation sector at EY Americas, the contract allows for some advancements in technology and automation. However, he noted that the move is still cautious, signaling a small step forward.
Avoiding a Disruptive Strike
In addition, a potential strike could have caused delays at 14 major ports from Boston to Houston. This would have disrupted shipments to factories and retailers, driving up costs. However, with the contract now approved, the threat of a strike has been avoided, ensuring smooth port operations.
Next Steps for Finalizing the Deal
Looking ahead, both parties are scheduled to meet during the week of March 10 to sign the agreement. Once signed, the contract will officially go into effect.
Presidential Support for the Union
Before his inauguration, President Donald Trump expressed strong support for the union. He argued that the money saved by automation does not outweigh the harm it causes to American workers. On social media, he wrote, “The amount of money saved is nowhere near the distress, hurt, and harm it causes for American workers, in this case, our Longshoremen.”
