D Labor union Port employers representing about 45,000 U.S. dockworkers reached a tentative agreement Wednesday, avoiding a strike at East and Gulf Coast ports later this month.
In a joint statement, the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) announced that they had reached an agreement on a six-year master agreement, giving the latter the power to approve the final contract terms.
“We are pleased to announce that the ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Agreement, subject to ratification, thus avoiding a work stoppage on January 15, 2025,” the two parties jointly said. Statement “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 – making them safer and more efficient, and building the capacity they need to keep our supply chains strong.” .”
Details of the tentative agreement will not be released to ILA rank-and-file members to review and approve the final document.
Economist warns Amazon, Starbucks strikes could 'backfire'
“This is a win-win agreement that ILA creates jobs, supports American consumers and businesses, and keeps the American economy at the center of global markets,” the two sides added.
The two sides signed a tentative deal in October – which gave workers a 62% wage increase over six years – to end the three-day strike, but walked away. Issues related to automation unsolved
But the two sides have been deadlocked over automation, leading to the most recent talks. If an agreement is not reached and a second strike occurs, the wage agreement agreed in principle will be taken off the table when the first strike ends and both sides will be back at square one.
Dockworkers union, employers to resume talks amid strike threat
President Biden Wednesday evening applauded the deal.
“Collective bargaining plays an important role when it comes to building a strong economy from the middle and bottom up,” he said. “Today's tentative agreement between the International Longshoremen's Association and the United States Maritime Alliance shows that labor and management can come together for the benefit of workers and their employers.”
Get Fox Business on the go by clicking here
“I applaud the dockworkers union for delivering a strong contract,” Biden continued. “Their members kept our ports open during the pandemic, as we worked together to free up global supply chains. Thank you to the carriers and port operators who play an essential role in our nation's economy.”
Fox Business' Brek Dumas contributed to this report.