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ILA-USMX Reach Tentative Deal on 6-year Deal

[ January 10, 2025   //   ]

The International Longshoremen’s Association, or ILA, and U.S. Maritime Alliance, or USMX, on Jan. 8 reached tentative agreement on all items for a new six-year master contract.
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 two sides said in a joint statement.
“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,” the statement said.
Negotiations resumed one day earlier and culminated in the deal that came one week before the current contract extension expire on Jan. 15 and affects about 45,000 dockworkers at U.S. East and Gulf coasts ports.
“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 Jan. 15,” the joint statement said. “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.”
“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,” the statement continued.

Semi-automated

While the two sides are withholding details, it is clear the new agreement includes a resolution on the topic of automation which has been a key point of disagreement between the ILA and USMX.
Talks between the union and port and terminal employers stalled in mid-November over the inclusion of semi-automated equipment in the ports. The two sides canceled four scheduled talks the week of Nov. 11, after extending the deadline as part of an agreement on wage increases struck following a three-day walkout in October
The tentative agreement reached Oct. 3 included a more than 60 percent increase in wages, but the two sides agreed to postpone implementation until the two sides could resolve the automation and other issues.
Terminal operators contend that they are out of space to expand in most locations and must use new technologies to respond to the need to increase volumes. The current contract establishes a review committee that includes union representatives for any proposed semi or fully automated systems.
Major U.S. ports within ILA’s reach do not have automated systems for handling containers, which USMX says puts them at a disadvantage to other global ports which have embraced the technology. Ports on the U.S. West Coast, which are under a different union, have accepted some automation.
The ILA have contended the technology is a replacement for jobs and not needed to maintain productivity at the ports. In addition to container handling systems, it objected for example to an automated gate system deployed by APM Terminals in Mobile, Alabama, calling it a contract violation, according to reports.

Trump a ‘Friend’ to ILA

President Joe Biden, in a statement late Jan. 8, said the tentative agreement “shows that labor and management can come together to benefit workers and their employers.”
He applauded the ILA “for delivering a strong contract. … Their members kept our ports open during the pandemic, as we worked together to unsnarl global supply chains. Thank you to the carriers and port operators who play an essential role in our nation’s economy.”
However, ILA President Harold J. Daggett credited President-elect Donald J. Trump as “one of the best friends of working men and women in the United States.” Trump had a two-hour meeting at his Mar-a-Lago resort in Florida with Daggett and ILA Executive Vice President Dennis A. Daggett on Dec. 12, which the union credited as a reason the ILA was able to win protections against automation and reach a tentative Master Contract agreement and avoid a second strike.
“I’ve studied automation and know just about everything there is to know about it,” Trump said following the Dec. 12 meeting. “The amount of money saved is nowhere near the distress, hurt and harm it causes for American workers, in this case, our Longshoremen. Foreign companies have made a fortune in the U.S. by giving them access to our markets. They shouldn’t be looking for every last penny knowing how many families are hurt.”
Harold Daggett said Trump’s statement “heard round the world” backed the ILA’s position “to protect American longshore jobs against the ravages of automated terminals.”
U.S. retailers offered support for the tentative labor deal.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers,” the National Retail Federation said Jan. 8. “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.”
The NRF in December sent a letter signed my nearly 270 business organizations, urging the two sides to return to the negotiation table.

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