A potential strike at various US ports and cargo centres has been avoided following a tentative agreement between dockworkers and their employers.
The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have come to a tentative agreement on a new six-year master contract, averting the risk of a port stoppage which was set for January 15, 2025.
Following a strike in October 2024, dockworkers secured a 62 percent pay increase which hinged on finalising a new contract. A significant stumbling block in the negotiations, employers intended to deploy semi-automated rail-mounted gantry cranes to enhance efficiency, while ILA contested these changes due to potential job losses.
A compromise on the matter was made, with the cranes at ports on the US East and Gulf coasts set to be introduced so long as high-paying jobs linked to the operation and maintenance of the new equipment are created.
The mitigation of the immediate strike threat is welcome news for the logistics supply chain. ILA and USMX members are now set to examine and approve the final documents, with ratification and completion expected in the coming months.
