A potential East and Gulf Coasts’ port labor strike has been averted, with the International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, and the United States Maritime Alliance (USMX), an alliance of container carriers, direct employers, and port associations serving United States-based East and Gulf Coasts , having come to terms on a tentative agreement on all items for a new six-year Master Contract, the parties said in a joint statement issued last night.
ILA and USMX said they agreed to continue to operate under the current contract until the ILA union meets with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract. The two sides will continue operating under the current contract until the votes are held. No dates for these meetings have been announced yet.
And they added that details of the new tentative agreement will not be released, in order to allow ILA rank-and-file-members and USMX members to review and approve the final document.
“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” said ILA and USMX. “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 path for the parties to get to this point has been bumpy.
As previously reported by LM, ILA and USMX resumed Master Contract discussions in November, “to discuss all outstanding issues to reach a new contract,” in advance of a January 15, 2025 deadline for a new deal. This followed a brief three-day strike on October 1, after the expiration of their previous six-year contract on September 30, which resulted in 36 East and Gulf Coast ports, stretching from Maine to Texas, going on strike for the first time since 1977.
USMX said, at the time, that there was positive progress on a number of issues, but they were unable to make significant progress on discussions focusing on a range of technology issues.
“Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades—making it impossible to evolve to meet the nation’s future supply chain demands,” said USMX.
The ILA countered, saying that for the first day and a half of meetings last month, discussions were productive, and both sides engaged in addressing serious issues but talks subsequently broke down when management introduced their intent to implement semi-automation, which ILA labeled “a direct contradiction to their opening statement where they assured us that neither full nor semi-automation would be on the table.”
ILA added that USMX claimed their focus was on modernization, not automation. And it added that ILA has always supported modernization when it leads to increased volumes and efficiency.
While the parties were set to meet on January 7, CNBC reported a secret meeting was held on January 6.
The report said that sources told CNBC that the talks mainly focused on refining language related to automation, with the aim of simplifying discussions when formal negotiations resumed on January 7. One key proposal, according to the report, was to allow the ILA to bring in union workers to support any new automated technologies, alongside a mutual commitment to adopting technologies that enhance operational efficiency and productivity. However, the proposal also raised concerns for the USMX about the potential for higher labor costs and the need to justify the creation of new jobs as automation is introduced at ports.
In December, President-elect Donald Trump threw his support behind labor and the ILA.
In a post on his Truth Social network, Trump said: “There has been a lot of discussion having to do with “automation” on United States docks,” wrote Trump. “I’ve studied automation, and know just about everything there is to know about it. The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen. Foreign companies have made a fortune in the U.S. by giving them access to our markets. They shouldn’t be looking for every last penny knowing how many families are hurt. They’ve got record profits, and I’d rather these foreign companies spend it on the great men and women on our docks, than machinery, which is expensive, and which will constantly have to be replaced. In the end, there’s no gain for them, and I hope that they will understand how important an issue this is for me. For the great privilege of accessing our markets, these foreign companies should hire our incredible American Workers, instead of laying them off, and sending those profits back to foreign countries. It is time to put AMERICA FIRST!”
ILA President Harold Daggett said that President Trump clearly demonstrated his unwavering support for ILA union and longshore workers with his statement, backing the ILA’s position to protect American longshore jobs against the ravages of automated terminals.
“President Trump’s bold stance helped prevent a second coast wide strike at ports from Maine to Texas that would have occurred on January 15, 2024, if a tentative agreement was not reached,” he said.
National Retail Federation (NRF) Vice President of Supply Chain and Customs Policy Jonathan Gold said that his organization is pleased to see the parties come to a final agreement on a new contract, given the critical roles they have in the retail supply chain.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers,” said Gold. “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.”
