NEW YORK—The union representing 45,000 dock workers on the U.S. East and Gulf Coasts and their employers have reached a tentative deal on a new six-year contract, averting further strikes that could have snarled supply chains and taken a toll on the U.S. economy.

In a joint statement, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) employer group called the agreement a “win-win.” The deal includes a resolution in automation, which had been the thorniest issue of on the table.

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

Terms of the deal were not disclosed. ILA and USMX have agreed to continue operating under the current contract until the contract is ratified.

On Oct. 1, 2024, longshoremen went on strike for the first time in nearly 50 years. The strike affected 36 ports across the United States, primarily along the East and Gulf coasts. However, dockworkers agreed to suspend the strike just three days later, with their current contract extended until Jan. 15, 2025, as negotiations continue. 

On wages, both sides met in the middle, agreeing to a 62 percent wage hike. But, the union said it would return to the bargaining table “to negotiate all other outstanding issues,” including the use of automation.

At ports, automation can take the form of driverless vehicles to shuttle containers around the wharf, cranes to stack boxes without much human intervention, and “automated gates” to process trucks. The latter uses RFID, machine vision and other technologies to document trucks and cargo entering and exiting a port. The gates automatically capture data on the driver, truck, trailer and containers. They then automatically tell drivers where to go to pick up or drop off their loads.

Proponents of the technology say that it improves traffic flow, decreases congestion, and reduces emissions from idling vehicles. The ILA complains that the technology reduces the need for gate clerks.

The National Retail Federation, which represents major customers like Walmart and Target, said the agreement should bring certainty back to ocean shipping by reducing the risk of disruptions at East and Gulf Coast ports that handle more than half of U.S. container imports.