ILA-USMX Reach Tentative Agreement to Avoid Strike

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative six-year Master Contract agreement, averting a potential strike scheduled for Jan. 16. Both sides agreed to continue operating under the current contract while preparing for ratification by ILA members and USMX officials.

Modernizing Ports While Preserving Jobs

The new agreement, reached on Jan. 8, safeguards existing ILA jobs while outlining a framework for integrating advanced technologies that will enhance safety, efficiency, and capacity at East and Gulf Coast ports. According to a joint statement, the deal represents a “win-win” solution, strengthening supply chains, creating jobs, and modernizing port operations; it also includes a historic 62% wage increase over the next six years.

Details from a document reviewed by CNBC reveal that negotiations started on Jan. 5 and focused on balancing automation and job security. Technologies such as semi-automated rail-mounted gantry cranes will complement human operators, who will retain control over precision-based tasks, supported by advanced features like anti-sway systems, cameras, and real-time feedback. The agreement ensures that new technologies will lead to job creation rather than displacement, addressing union concerns.

Political and Industry Support

Harold Daggett, President, ILA, credits political backing for securing protections against automation for the union’s 85,000 members. He particularly highlights former President Donald Trump’s intervention, including direct communications with USMX officials, as pivotal to reaching an agreement. Trump had spoken by telephone with USMX officials to express his support for the ILA longshore workers, particularly in their fight against automation, which he claims could harm US workers and their families, MBN reported.

“President Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his statement “heard round the world” backing our position to protect American longshore jobs against the ravages of automated terminals,” says Daggett.

In a statement, US President Joe Biden states that collective bargaining plays an important role in building a strong economy from the middle out and the bottom up. “Today’s tentative agreement between the International Longshoremen’s Association and the United States Maritime Alliance shows that labor and management can come together to benefit workers and their employers,” states Biden. 

Julie Su, Acting Secretary of Labor, also praised the tentative agreement, highlighting the administration’s commitment to workers’ rights, calling the agreement a testament to productive negotiations.

Eric Byer, President, Alliance for Chemical Distribution, underscores the economic significance of the deal, noting that a strike would have disrupted supply chains and caused delays across East and Gulf Coast ports.

Preparedness by Shipping Lines

Shipping companies had already issued plans to mitigate potential disruptions. MSC, ONE, and ZIM announced surcharges, adjusted booking policies, and advised customers to clear cargo before Jan. 15.