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US longshoremen reached a tentative contract agreement with ports and shippers Wednesday, averting a strike that could have shut down ports on the East and West coasts next week and significantly damaged the economy. The deal must still be voted on by union members, the reports. If it's approved, workers will have new protections against automated technology replacing their jobs.
The International Longshoremen's Association union and the US Maritime Alliance of ports and shipping companies announced they'd agreed on a six-year contract ahead of a Jan. 15 deadline, per the . Some estimates put the cost to the economy of a strike at hundreds of millions of dollars a day.
Negotiations had resumed this week for the first time since November, per the . The longshoremen staged a three-day strike in October, suspending the walkout after agreeing to a 62% pay increase over six years. But that truce was contingent upon reaching an agreement over automation: The union worried that machines—especially semi-automated cranes—would replace workers.
Port operators and shipping companies argue that US ports are falling behind more automated one in places including Rotterdam, Dubai, and Singapore, per the AP. The two sides said Wednesday that the deal protects union jobs and allows ports to modernize with new technology, "making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.'' Details were not released.
An extended strike could have led to shortages affecting retail, electronics, the auto industry, and agriculture. And shortages might have led businesses to raise prices. (More stories.
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