More than 45,000 U.S. dockworkers, represented by the International Longshoremen's Association (ILA), have ratified a new six-year contract. This agreement includes a 62% wage increase over its term, concluding a previous three-day strike that had spiked shipping costs and caused cargo backlogs at 36 ports. The ports, some of the busiest in the U.S., account for over half of the country's imports, including vital supplies for high-tech greenhouse operations.
The contract, effective from October 1, 2024, to September 30, 2030, raises the hourly base rate for workers from $39 to $63. This places longshoremen among the highest-paid blue-collar workers in the U.S., which could impact the cost structures of industries reliant on imports, such as greenhouse operations. The agreement also accelerates wage increases for new ILA workers, enhances healthcare plans, and increases employer contributions to retirement plans. It also addresses concerns over automation, a topic that had previously delayed the agreement.
ILA President Harold Daggett stated, "We now have labor peace for the next six years," noting the contract's estimated $35 billion cost to employers. The deal offers stability to shippers amid global uncertainties, including disruptions in the Red Sea and potential new tariffs, which could affect supply chains critical to greenhouse growers.
The United States Maritime Alliance (USMX), representing employers like APM Terminals and COSCO Shipping, credited former President Donald Trump for facilitating discussions on automation.
Source: Reuters