US Dockworkers Approve New Labor Contract, Securing Wage Increases and Job Protections

Dockworkers on the East and Gulf Coasts have voted overwhelmingly in favor of a new six-year labor contract, bringing stability to ports that handle a significant portion of US trade.

The agreement, which includes a substantial wage increase and job security measures, follows a brief strike in October and months of negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX).

Nearly 99% of ILA members supported the contract, which will raise hourly wages from $39 to $63 by 2029, marking a 62% increase over six years. The agreement also ensures job protections amid growing concerns over automation, requiring employers to maintain human oversight even as technology is introduced to improve efficiency.

The deal, retroactive to October 1, 2024, was finalized after pressure from both the Biden and Trump administrations. President Joe Biden’s team urged employers to improve their wage offer, while former President Donald Trump voiced support for the union’s stance against full automation.

The contract covers approximately 25,000 dockworkers at 36 major ports, including New York-New Jersey, Savannah, and Houston, which collectively handle more than half of US imports. The agreement averts potential disruptions that could have strained supply chains and increased costs for businesses and consumers.

While the contract grants employers more flexibility to introduce modern technology, it mandates new hires to accompany automation efforts. This compromise reflects an ongoing debate in the shipping industry, where fully automated ports in Europe and Asia have sparked concerns about labor displacement in the US.

With input from the New York Times, Reuters, and the Associated Press.