Longshoremen’s Union Reaches Deal to Prevent a Major Port Strike in the U.S.

What Happened?

The U.S. Maritime Alliance and the International Longshoremen’s Union (ILA) reached a tentative deal yesterday that would prevent a massive strike of port terminal operators in the United States.

Union members will still have to vote to approve the deal, which includes new protections for workers against automated technologies and significant pay raises for workers. 

Why it Matters

A joint statement from the International Longshoremen’s Union and the U.S. Maritime Alliance claimed:

‘This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports — making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.’

The deadline to reach a new agreement was January 15, 2025, and without a new deal after that date port terminal workers on the east, west, and gulf coasts would have gone on strike, which could have paralyzed port operations in the United States.

A strike, especially a prolonged one, could have forced many businesses to face supply chain shortages forcing them to use higher priced alternatives. That in turn would have raised prices for consumers.

According to Lauren Gurley of the Washington Post:

‘The tentative deal includes a compromise allowing the ports to implement new technology that modernizes the shipyards providing that specific jobs will be added alongside that technology, according to a source familiar with negotiations who spoke on the condition of anonymity to share details not publicly disclosed. Fully automated tech remains banned in the contract.’

Port terminal workers were concerned new automation technologies could threaten their jobs, and have long voiced those concerns to the U.S. Maritime Alliance.

The ban on fully automated technology means that in the United States, human port terminal workers will be guaranteed employment for at least the next six years, which is the duration of the current proposed agreement.

Automation in terminals has been growing around the world, with a growing number of ports in Asia and Europe already operating as fully automated. Port operators in the United States, particularly in Los Angeles and New York, the two largest American ports, have been arguing for increased automation to reduce costs and increase efficiency. 

How it Affects You

Had a major port strike occurred, estimates for the impact on the U.S. economy vary. But most put the cost at between three to four billion dollars per week.

A vote to approve the new contract has not yet been scheduled or announced by the ILA, but it is expected to take place fairly soon.

Until then, both the U.S. Maritime Administration and the ILA have agreed to continue operating under the terms of their current contract.