Dockworkers on the U.S. East and Gulf coasts have voted overwhelmingly in favor of a six-year contract, effectively preventing a potential strike that could have had severe economic repercussions. The International Longshoremen's Association union leadership had previously reached a tentative agreement with the U.S. Maritime Alliance of ports and shipping companies in January, which was subsequently approved by the alliance last month.
The union announced that nearly 99 percent of its rank-and-file members voted in favor of the contract, which includes a significant 62% pay raise over the six-year period. This increase will raise hourly wages at the top of the union pay scale from $39 to $63 per hour. ILA President Harold Daggett, who led the negotiations, described the agreement as setting the 'gold standard' for dockworker unions worldwide.
The negotiations were challenging and even involved a three-day strike last fall. However, Daggett emphasized that the new contract ensures labor peace for the next six years. One of the key points of contention, automation at ports, was also addressed in the agreement. While the contract allows for the introduction of modernizing technology, full automation is prohibited, and port operators must hire new workers when implementing such technologies.
Industry experts noted that the contract provides ports with more flexibility to adopt advanced technology and automation, albeit with certain restrictions. The potential for automation had been a major concern for the union, fearing that machines could replace human workers and impact job security.
The union's decision to go on a three-day strike in October was later suspended to allow for further negotiations. A prolonged shutdown at 14 ports along the East and Gulf coasts could have disrupted shipments to American factories and retailers, leading to increased costs.
The signing of the agreement is scheduled for the week of March 10, after which it will come into effect. President Donald Trump had expressed support for the union before his inauguration, highlighting the importance of protecting American workers amidst technological advancements.
