The union representing dockworkers at the Gulf and East Coast ports approved a six-year labor contract on Feb. 25, averting the threat of a strike that previously had some distributors increase safety stock and take other measures to prepare for disruption.
The approved contract clears up questions on port automation, which was a major sticking point throughout negotiations.
Listen to the MDM Podcast, featuring the National Association of Wholesaler-Distributors CEO Eric Hoplin, for more details about the initial negotiations and distribution’s stance on port automation (October 2024).
According to Associated Press and Wall Street Journal reports, the contract will:
- allow ports to introduce modernized technology, but they will have to hire new workers when they do;
- block the use of fully automated cranes at ports, which the International Longshoremen’s Association have said threatens jobs
Dockworkers voted in favor of a new labor deal that runs through Sept. 30, 2030 and delivers a 62% pay raise, $63 an hour up from $39.
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