ILA-USMX Agreement Secures Six Years of Stability for U.S. East and Gulf Coast Ports
For businesses that rely on U.S. East and Gulf Coast ports to ship their goods, this agreement provides certainty and maintains the efficient movement of goods.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have officially signed a six-year master contract—a move that will ensure labour and supply chain stability at major U.S. East and Gulf Coast ports through September 2030.
This agreement, formalized last week in North Bergen, New Jersey, marks a significant victory for dockworkers and offers record wage increases and protections against automation.
According to a statement from USMX announcing the agreement, both parties expressed optimism for their collective futures now that labour peace is secured.
ILA President Harold Daggett, who served as the union’s Chief Negotiator, described the new agreement as the “gold standard” for dockworker unions globally.
The agreement includes a significant 62% wage increase over six years, with hourly base rates increasing from $39 to $63.
It also protects workers against automation by allowing for the introduction of modern technology, but only under conditions that require hiring new workers and prohibit full automation.
Beyond wage increases and protection against automation at U.S. East and Gulf Coast ports, the new master contract includes several other notable provisions:
Paul De Maria, USMX’s Executive Vice President and Chief Operating Officer, stated that the agreement furthers the mission to “create modern and safe working conditions across the industry while focusing on enhancing strong and efficient supply chains to ensure American companies can access the global marketplace.”
The contract received strong union support and was overwhelmingly ratified by nearly 99% of ILA members.
This development follows a three-day strike in October 2024—the first in nearly 50 years.
Contract negotiations between the ILA and USMX lasted more than a year as both parties worked to settle key labour concerns.
The previous six-year contracts, covering more than 45,000 unionized port workers, were set to expire on September 30, 2024. However, negotiations concerning wages, automation, and health and retirement benefits have stalled the process.
Tensions escalated in June 2024 when the ILA called off negotiations and accused port employers of using autonomous gate technology at the Port of Mobile, Alabama, in a way that bypassed union labour.
USMX disputed these claims, stating that the technology had been in place since 2008, long before the 2018 labour agreement was signed.
With negotiations on hold, both the ILA and USMX filed a Notice to Mediation Agencies (Form F-7) with the Federal Mediation & Conciliation Service (FMCS) in late August 2024.
By September 2024, the ILA threatened to initiate a port strike if no agreement was reached before October 1.
The ILA followed through with a three-day strike, which was called off on October 3 after port employers and union officials agreed to return to the negotiating table and extend the existing contract until January 15, 2025.
The ILA and USMX ultimately reached an agreement, avoiding widespread disruptions and ensuring the continued operation of vital trade hubs along the U.S. East and Gulf Coasts, including New York and New Jersey, Savannah, Charleston, and Houston.
If you ship goods through any U.S. East Coast or Gulf Coast ports, we’ve got you covered.
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To discuss your shipping options and how we can help, please reach out to one of our trade professionals.