The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have announced a tentative agreement for a new six-year Master Contract. The agreement, subject to ratification, averts a potential work stoppage that was scheduled to begin on 15 January 2025.
In a joint statement, the ILA and USMX revealed that the deal would safeguard existing ILA jobs while establishing a framework for introducing new technologies at East and Gulf Coast ports. These technologies are expected to enhance efficiency, safety, and port capacity, contributing to stronger supply chains.
The current contract will remain in effect until the ILA Wage Scale Committee and USMX members conduct their respective ratification votes. Specific details of the agreement have not been disclosed, allowing members of both organisations time to review the terms.
The two sides emphasised the agreement’s positive impact, stating it would create jobs, support American consumers and businesses, and maintain the United States’ central role in the global economy.
Further developments are anticipated following the ratification process.
Strike would have disrupted 14 major ports
The potential strike was a result of ongoing tensions between the ILA and USMX, centred around concerns over automation at ports. The union expressed significant fears that the introduction of fully automated technologies could lead to job losses among longshoremen, who play a key role in the handling and transportation of goods across the United States.
In October 2024, a temporary resolution was reached over wages, with workers receiving a 10% increase in hourly pay for the first year and a cumulative 62% rise over the course of the six-year contract. However, the issue of automation remained unresolved, with the ILA arguing that such technological advancements could further reduce the number of jobs available to its members.
Negotiations resumed in early January 2025, with the ILA and USMX reaching a tentative agreement that addresses both automation concerns and job security. The contract now permits semi-automation, such as automated cranes, while ensuring that ILA workers will retain jobs directly related to new technologies. However, fully automated systems remain excluded from the agreement.
Had the strike gone ahead, it would have disrupted operations at 14 major ports across the East and Gulf Coasts, potentially crippling shipping schedules and severely impacting supply chains. The ports in question handle a significant portion of US imports and exports, and any disruption could have had widespread effects on industries reliant on timely deliveries.