By Paul Berger
U.S. dockworkers and shipping companies reached a tentative labor deal, capping a contentious contract battle that drew attention from President Biden and President-elect Donald Trump and averting a strike at major ports that threatened to rattle the U.S. economy.
The agreement reached in principle verbally on Wednesday must still be ratified by port employers and by tens of thousands of members of the International Longshoremen's Association, according to people familiar with the talks.
The union for months was locked in testy talks with the United States Maritime Alliance, which represents port terminal operators and some of the world's largest ocean shipping companies. The two sides have been trying to reach an agreement ahead of a Jan. 15 deadline when the current labor contract ends.
The agreement avoids a repeat of a three-day strike last October that sent a brief shock wave through the economy. The walkout closed major U.S. trade gateways including the Port of New York-New Jersey and Georgia's Port of Savannah in the crucial period when retailers stock up for the holidays.
The Biden administration intervened, getting the sides to agree to a partial, tentative deal raising dockworker pay about 62% over six years.
Port employers and ocean shipping companies hoped the hefty pay raise would help bring concessions on the use of automation at ports. But union leaders dug in, according to people familiar with the talks, and pushed for more workers to be hired in operations that use autonomous equipment.
The union and employers didn't reveal details of the tentative agreement. They said in a joint statement that the deal "protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports."
They said dockworkers would continue to work under the current contract until the contract is ratified by all of the parties.
Write to Paul Berger at paul.berger@wsj.com
(END) Dow Jones Newswires
January 08, 2025 19:07 ET (00:07 GMT)
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