ILA, USMX Reach Contract Agreement, Avoid Port Strikes

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative six-year master contract agreement. This new deal will replace the current contract, which had been temporarily extended following a brief strike in October 2024.

In a joint statement released late Wednesday, the parties announced that operations would continue under the existing contract until the ILA’s Wage Scale Committee convenes for a ratification vote, and USMX members finalize their approval of the agreement.

The contract, which affects approximately 25,000 union workers involved in container-handling across 14 ports and maritime cargo centers from Texas to Boston, does not cover workers handling roll-on/roll-off vehicles, a sector also impacted during the October strike.

Key Agreement Terms and Compromise

According to sources familiar with the negotiations, terminal operators and ocean carriers secured the ability to deploy semi-automated rail-mounted gantry cranes and other efficiency-boosting technologies, while the union obtained guarantees for new high-paying jobs directly tied to each piece of equipment. Cranes and related roles represent some of the most lucrative opportunities for port workers.

The groundwork for the agreement was laid during preparatory meetings held before formal negotiations. While both parties had already agreed to a 62% pay increase after the October strike, this was contingent upon finalizing the contract.

Remaining issues, including benefits and container royalties, will be addressed in subsequent discussions.

Risk of a January Strike Avoided

The tentative agreement averted a potential strike that could have begun on January 15, when the extended contract was set to expire. President Joe Biden refrained from intervening during the October strike, and it remains unclear whether President-elect Donald Trump, whose second term begins shortly, would have taken action had the dispute escalated.

Industry Reactions and Broader Implications

Trade and logistics groups welcomed the news, emphasizing the importance of stability and modernization in the industry. Jonathan Gold, Vice President of the National Retail Federation, commended the agreement’s role in ensuring the timely delivery of goods and supporting modernization efforts essential for growth and supply chain resilience.

Similarly, the International Association of North America (IANA) praised the collaboration between the ILA and USMX. Acknowledging that specific terms have yet to be disclosed, the group emphasized the importance of the deal in fostering economic growth and supporting the workforce driving intermodal freight operations.

The final negotiation and ratification process are expected to extend into the summer, with details of the agreement remaining under wraps for now. However, the framework set by this deal signals a commitment to long-term stability and modernization at key U.S. ports.

Source: www.wcshipping.com