East and Gulf Coast Port Workers Reach Tentative Deal, Averting Strike

A potentially crippling strike along America’s East and Gulf Coasts has been averted after longshoremen and shipping companies reached a tentative agreement on a new six-year contract. The deal, announced Wednesday, prevents a strike that was set to begin on January 16, 2025, and ensures the continued operation of 14 major ports from Maine to Texas.

The United States Maritime Alliance (USMX), representing ship lines and port operators, and the International Longshoremen’s Association (ILA), representing 50,000 workers, jointly announced the agreement. The deal protects current jobs while allowing for the implementation of new technologies to modernize ports and improve efficiency. However, the contract must still be ratified by the union’s membership.

“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,” the two sides said in a statement. They emphasized that the deal supports American consumers, businesses, and the economy.

Key to the agreement was a compromise on automation, a major sticking point during negotiations. While fully automated technology remains excluded, the contract allows for semi-automation, such as cranes that can perform some tasks without human involvement. The ILA secured guarantees that any new technology would come with associated union jobs.

President Joe Biden praised the agreement, calling it a “win-win” for workers and employers. “Today’s tentative agreement shows that labor and management can come together to benefit workers and their employers,” Biden said in a statement. He commended the ILA for securing a strong contract.

The deal follows a three-day strike in October 2024, which ended after the parties agreed on wage increases. Workers received a 10% pay raise in the first year, with total wage increases of 62% over the six-year contract. Negotiations resumed in November, culminating in Wednesday’s agreement.

President-elect Donald Trump, who met with ILA President Harold Daggett in December, had expressed support for the union’s stance on automation. Trump criticized foreign-owned shipping companies, stating that he preferred investments in American workers over machinery.

The agreement ensures the stability of supply chains and prevents disruptions that could have impacted the U.S. economy. Ports along the East and Gulf Coasts handle a significant portion of the nation’s imports and exports, making the deal critical for businesses and consumers alike.