Although the agreement has yet to be ratified, it is seen as a significant step toward ensuring the stability and efficiency of U.S. ports, which are vital to the nation’s economy.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have tentatively agreed to a new six-year master contract, effectively averting a potential work stoppage previously scheduled for January 15, 2025.
This master contract is designed to protect current ILA jobs while establishing a framework for implementing technologies at U.S. East and Gulf Coast ports.
It addresses automation concerns yet allows for technological advancements to modernize ports—in an effort to improve safety, efficiency, and capacity.
In a joint statement, both parties described the deal as a “win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
Specific details of the master contract will remain confidential until both ILA rank-and-file members and USMX members have had the opportunity to review and ratify the final document.
In the meantime, operations will continue under the current contract.
This development follows a three-day strike in October 2024, after which dockworkers secured a 62% wage increase over six years.
The unresolved issues between the ILA and USMX included:
The National Retail Federation (NRF) stated that agreeing on a master contract should restore certainty to ocean shipping by minimizing the risk of disruptions at U.S. East and Gulf Coast ports, which handle more than half of the country’s container imports.
Jonathan Gold, NRF's Vice President of Supply Chain and Customs Policy, said, "The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation's supply chain."
The Biden Administration, industry leaders, and trade groups applauded the agreement reached between the ILA and USMX.
President Joe Biden stated, “Today’s tentative agreement between the International Longshoremen’s Association and the United States Maritime Alliance shows that labour and management can come together to benefit workers and their employers.”
Meanwhile, the ILA’s President, Harold Daggett, referred to President-elect Trump’s support for the ILA, which helped avert a second coast-wide strike at ports from Maine to Texas, had no agreement on a master contract been reached.
Daggett said, “Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his statement “heard round the world” backing our position to protect American longshore jobs against the ravages of automated terminals.”
Moreover, the Retail Industry Leaders Association stated, “ILA and USMX reaching consensus on this tentative agreement is a welcome relief for all industries that rely on these ports. We urge a quick ratification of the agreement to eliminate the element of uncertainty that has long lingered over supply chains and the U.S. economy.”
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