The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have announced a tentative agreement on all items for a new six-year Master Contract, a joint press release stated.
A second coast-wide strike and major supply chain disruptions at ports between Maine and Texas have been averted if a tentative agreement was not reached by January 15, 2025, thereby clouding the final days of the Biden administration and the transition to President-elect Donald Trump’s January 20 inauguration.
The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.
“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,” the two sides said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.
“This is 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.”
Details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document.
The 45,000 longshoremen had returned to work from a three-day strike in October after maritime employers approved a 62% wage increase over six years while a January 15 deadline was set for resolving outstanding issues.
The National Retail Federation said the agreement should bring certainty back to ocean shipping by reducing the risk of disruptions at East and Gulf Coast ports that handle more than half of U.S. container imports.
“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,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy.
Late Wednesday, ILA President Harold Daggett credited President-elect Trump for the successful contract agreement with the USMX. “President Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his (December) statement ‘heard round the world’ backing our 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, 2025, if a tentative agreement was not reached.”
(Photo of APM Terminals at the Port of NY/NJ)