Labor peace is now restored for 36 United States-based East and Gulf Coast ports following a brief but heightened period of uncertainty. The ports had been shut down for the better part of three days after the expiration of the previous six-year contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) at 12:01 AM ET on Monday, October 1.
The parties had been at odds for several months leading up to the end of the contract, covering union dockworkers, with concerns growing about the prospects of reaching a new deal in time.
However, a joint statement issued tonight by the ILA and USMX clarified that a long-term strike would not occur.
“The International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table and negotiate all other outstanding issues,” the statement read. “Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume.”
In the months leading up to tonight’s announcement, the ILA had held firm, making it clear it would not compromise on key demands, with a primary focus on securing higher wages and protections against fully automated ports.
As reported by LM, with the situation growing increasingly tense and prospects for a deal looking slim, USMX filed an unfair labor practice charge with the National Labor Relations Board (NLRB) last week in an effort to bring the ILA back to the negotiating table.
“USMX has been clear that we value the work of the ILA and have great respect for its members,” USMX said at the time. “We have a shared history of working together and are committed to bargaining. Due to the ILA’s repeated refusal to come to the table and bargain on a new Master Contract, USMX filed an Unfair Labor Practice (ULP) charge with the National Labor Relations Board (NLRB) and requested immediate injunctive relief—requiring the Union to resume bargaining—so that we can negotiate a deal.”
The chances of the filing being successful seemed unlikely from the start, given the escalating quarrels between the parties, especially in recent weeks.
This was underscored in a September 24 statement from the ILA, which asserted that despite claims from USMX of the ILA refusing to negotiate, the two sides had communicated several times in recent weeks. The stalemate in Master Contract negotiations, the ILA said, was due to USMX offering an unacceptable wage increase package.
Earlier this week, USMX confirmed that it had exchanged counteroffers with the ILA regarding wages.
“The USMX increased our offer and has also requested an extension of the current Master Contract now that both sides have moved off their previous positions,” USMX said. “We are hopeful this could allow us to fully resume collective bargaining on other outstanding issues. Our offer would increase wages by nearly 50%, triple employer contributions to employee retirement plans, strengthen our healthcare options, and retain the current language around automation and semi-automation.”
However, ILA officials rejected this offer, arguing it fell far short of what ILA rank-and-file members demanded in wages and protections against automation.
“USMX brought on this strike when they decided to hold firm to foreign-owned ocean carriers earning billion-dollar profits at U.S. ports but not compensating American ILA longshore workers, who perform the labor that brings them their wealth,” said ILA President Harold Daggett. “We are prepared to fight as long as necessary, to stay out on strike for whatever period it takes, to secure the wages and protections against automation our ILA members deserve. USMX owns this strike now. They must meet our demands for it to end.”
While the specific terms of the tentative wage agreement were not disclosed, a Wall Street Journal report, citing “people familiar with the matter,” said USMX offered a 62% wage increase over six years.
President Biden praised the reopening of the East and Gulf Coast ports and the tentative agreement on record wages as a significant step forward in securing a strong contract.
“I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic,” he said. “And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table. I want to thank the union workers, the carriers, and the port operators for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding. Collective bargaining works, and it is critical to building a stronger economy from the middle out and the bottom up.”
The news was met with approval from various industry stakeholders.
American Association of Port Authorities President Cary S. Davis emphasized the importance of cooperation between management and labor.
“As it takes some time for operations to return to normal, we must be patient and are reminded once again that our system is resilient and can withstand short and contained impediments,” Davis said. “However, we are glad the strike has ended, and AAPA sincerely thanks USMX and ILA for coming together and negotiating an agreement.”
National Retail Federation President and CEO Matthew Shay added that the end of the strike and the reopening of East and Gulf Coast ports was good news for the U.S. economy.
“It is critically important that the International Longshoremen’s Association and the United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families.”
