Longshoremen reach tentative agreement with ports, shippers and avert a potential strike

American longshoremen reached a contract agreement with ports and shippers on Wednesday, averting a potential strike which could have hurt the US economy.

The International Longshoremen’s Association union and the US Maritime Alliance of Ports and Shipping Companies said they had reached a tentative agreement on a six-year contract, a week before a January 15 deadline.

In a joint statement, the two parties said the agreement protects union jobs and allows East and Gulf Coast ports to modernize with new technology, “making them safer and more efficient and creating the capacity they need to keep our supply chains strong.” ”

They said they did not release details of the agreement to give union members a chance to review and approve the document. The ratification process is likely to take weeks.

The 45,000 farmers launched a three-day strike in October. They suspended the walkout after accepting a 62% wage increase over six years that would have sent hourly wages to the top of the pay scale from $39 to $63. But that truce was contingent on reaching an agreement by Jan. 15 on automation: The union worried that machines — especially semi-automated cranes — would replace human workers.

According to a source familiar with the talks, who requested anonymity because the details had not been made public, the deal would give the ports more leeway to introduce modernization technology. But in a concession to the union, they would have to hire new workers when they do, and full automation is off the table.

Wednesday’s agreement came a day after the two sides resumed negotiations. “This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy as the key center in the global marketplace,” they said in the statement.

A strike would have shut down ports along the East and Gulf coasts and would have begun to hurt the economy if it lasted much more than a week, economists said.

Automation has long been a contentious issue in US ports. Longshoremen worry that machines — such as semi-automatic cranes that don’t need their own individual operators — will replace human workers. Even if ports agree to protect existing jobs as they modernize, they may need fewer workers as they become more efficient, meaning the port workforce and the union could shrink over time.

Port operators and shipping companies argue that US ports are lagging behind more automated ports such as those in Rotterdam, Dubai and Singapore.

President-elect Donald Trump had weighed in for the trade union.

After meeting with union president Harold Daggett at his Mar-a-Lago club in Palm Beach, Florida, Trump wrote on social media last month that further automation of ports would hurt workers: “The amount of money saved is not in near the distress, hurt and harm it causes to American workers, in this case our Longshoremen.” Trump added that he knows “almost everything there is to know” about automation.