A strike at U.S. East and Gulf Coast ports was averted Jan. 8 as dockworkers and employers reached a tentative labor agreement just days before the Jan. 15 deadline, The New York Times reported Jan. 8.
The agreement comes after months of tense negotiations and a strike in October by the International Longshoreman's Association, which represents the dockworkers, and the United States Maritime Alliance. The dispute had centered on the issue of automation at the ports.
The deal ensures job protections for ILA members while allowing for the introduction of automated cargo-moving technology to modernize operations at the ports. Both sides said in a joint statement that the agreement "protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports."
The deal is pending ratification by union members and approval from the employer's negotiating group, but it comes as a relief to businesses reliant on the ports, which handle three-fifths of U.S. container traffic.
The new contract also includes a pay increase for dockworkers, from $39 an hour to $63 an hour for the next six years.