WASHINGTON (AP) — Dockworkers on the U.S. East and Gulf coasts overwhelmingly authorized a six-year contract Tuesday, averting the specter of a strike that might have crippled the financial system.

The sure vote was anticipated after the management of the Worldwide Longshoremen’s Affiliation union reached a tentative contract settlement in January with the U.S. Maritime Alliance of ports and transport corporations.

The alliance authorized the contract final month, and on Tuesday rank-and-file members voted for it with practically 99 % in favor, the union stated in an announcement.

The contract requires a 62% pay hike over six years that may elevate hourly wages on the prime of the union pay scale from $39 an hour to $63 an hour.

ILA President Harold Daggett, who served because the union’s chief negotiator, was quoted within the assertion as saying the settlement is “the ‘gold customary’ for dockworker unions globally.”

He remarked that it was a tough contract to barter and even required a three-day strike final fall, however “We now have labor peace for the following six years.”

The union and the alliance additionally reached a truce on probably the most contentious labor situation on America’s docks: automation. The union worries that machines — particularly semi-automated cranes — will exchange human staff. Port operators and transport corporations argue that U.S. ports are falling behind extra automated ones reminiscent of these in Rotterdam, Dubai and Singapore.

The brand new contract provides ports extra leeway to introduce modernizing know-how. However they’ve to rent new staff once they do, and full automation is off the desk.

“The pending contract opens the door a little bit extra for superior know-how and automation,” Brian Lynch, chief of the transportation sector on the consulting agency EY Americas, stated earlier than the vote. “The door’s cracked a bit.”

The union went on the three-day strike in October however suspended it to permit for extra talks. A protracted shutdown at 14 ports stretching from Boston to Houston may have delayed shipments to American factories and retailers and pushed up prices.

The 2 sides are anticipated to satisfy the week of March 10 to signal the settlement, after which it could go into impact.

Earlier than his inauguration, President Donald Trump voiced help for the union. Claiming to “know nearly all the pieces there may be to know” about automation, Trump wrote on social media, “The amount of cash saved is nowhere close to the misery, damage, and hurt it causes for American Staff, on this case, our Longshoremen.”

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