Labor peace for the 36 United States-based East and Gulf Coast ports, stretching from Maine to Texas, has been reached, with a new six-year contract between 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, being officially signed this week, with the contract retroactively effective from October 1, 2024 through September 30, 2030.
This outcome was expected, following ILA membership overwhelmingly ratifying the contract on February 25, with nearly 99% of its membership in approval, which followed the ILA’s Wage Scale Committee unanimously approving the tentative agreement between the ILA and USMX Alliance (USMX), which was struck in early January. ILA officials said that this new contract extension is comprised of what it said were record wage increases and also protections against automaton, with the latter a key sticking point throughout negotiations. The parties came to terms on a tentative agreement on all items for a new six-year Master Contract on January 8.
“I am proud to have produced this new agreement with the help of my ILA Wage Scale Committee for my ILA members,” said ILA President Harold Daggett. “We achieved a record-setting 62 percent increase in wages; full protection against automation; accelerated wages raises for new workers; full container royalty funds returned to the ILA; the best medical plan in our MILA national health care program that fully protects our ILA members and their families, and raises in contributions to money purchase plans. I am grateful to USMX for negotiating a new agreement that recognizes the contributions ILA members have made to build this industry, and help it grow and prosper. I am proud of my ILA members who withstood a three-day strike in October 2024 and remained strong and united to help bring about this landmark agreement.”
As for the USMX, Paul DeMaria, USMX Executive Vice President and Chief Operating Officer and lead negotiator, said that this agreement received unanimous support from USMX membership.
And he added that it, “furthers its mission to create modern and safe working conditions across the industry while continuing to focus on enhancing strong and efficient supply chains to ensure American companies can access the global marketplace.”
The path for the parties to get to this point was 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.
In December, then 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 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 previously 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.”
