The International Longshoremen’s Association and the United States Maritime Alliance have reached a tentative agreement on a six-year master contract, averting a potentially crippling strike that could have begun on January 15, 2025. The deal, which impacts 25,000 dockworkers at ports along the East and Gulf Coasts, will now proceed to ratification by both union members and USMX representatives.
The proposed agreement comes after months of tense negotiations, including a brief work stoppage in October 2024 that highlighted the stakes for both sides. While specific terms have not been disclosed, the agreement is said to balance the interests of both the ILA and USMX, particularly on contentious issues like automation.
In a joint statement, the two groups emphasized that the contract “protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports.” These updates aim to enhance efficiency, improve safety, and increase the ports’ capacity to handle growing trade volumes.
Sources familiar with the negotiations revealed that the deal includes provisions for semi-automated equipment, such as rail-mounted gantry cranes, while ensuring new union jobs tied to the operation and maintenance of these technologies. Jobs associated with cranes remain among the most lucrative positions at the ports, underscoring their importance in the negotiations.
The announcement has been widely praised by trade groups and industry stakeholders, who had been bracing for widespread disruptions had a strike occurred. Ports covered under the agreement, from Boston to Texas, play a crucial role in the nation’s supply chain, handling a significant percentage of imports and exports.
A major sticking point during negotiations was the introduction of automation technologies. While the USMX argued that automation was necessary to improve port efficiency and competitiveness, the ILA strongly opposed any measures that could reduce union jobs.
ILA President Harold Daggett, who has been a vocal critic of automation, framed the tentative agreement as a victory for workers. “This deal ensures that technology will not replace workers but instead create opportunities for new, high-paying jobs,” Daggett said in a statement.
The issue of automation remains deeply divisive in the maritime industry. The current ILA contract, negotiated in 2018, prohibits full automation, reflecting the union’s longstanding concerns about job security. However, both sides appear to have found common ground in this new deal by tying automation to job creation.
The resolution comes at a critical time for the U.S. economy, with ongoing inflation concerns and supply chain bottlenecks highlighting the importance of functional ports. A strike could have disrupted the flow of goods, impacting businesses and consumers alike.
U.S. President-elect Donald Trump, set to begin his second term later this month, played a behind-the-scenes role in the negotiations. According to the ILA, Trump’s support for the union’s anti-automation stance was instrumental in securing the tentative agreement. The union revealed that during a December meeting at Mar-a-Lago, Trump personally called USMX officials to advocate for the ILA.
The tentative agreement will now undergo review by the ILA’s Wage Scale Committee and a ratification vote by union members. USMX members will also need to approve the deal. This process is expected to extend into the summer, with the existing contract remaining in effect until then.
Information for this briefing was found via Zero Hedge and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
